Aggregate Production Planning Test
With Complete Solutions
Aggregate Production Planning CORRECT ANSWERS A managerial statement of time-
phased production rates, work-force levels, and inventory investment, which takes into
account customer requirements and capacity limitations. Attain best way possible.
What is APP driven by? CORRECT ANSWERS Forecast.
Characteristics of APP CORRECT ANSWERS Time horizon (in general)- medium
(tactical 1-5 yrs).
Time buckets (divisions of horizons).
Rolling horizon.
Plan with the longest time horizon.
What are the 3 types of pure strategies? CORRECT ANSWERS Level, chase, stable
workforce.
Master Production Scheduling (MPS) CORRECT ANSWERS The ungrouping of a
product.
1st level of disaggregation (still some level of aggregation there).
Break down into more real end items.
More specific and frequently revised.
Horizon and buckets are no larger than APP ever.
Implemented on rolling horizon.
Material Requirements Planning (MRP) CORRECT ANSWERS Uses extreme detail, no
aggregate products are used.
Shop Floor Scheduling CORRECT ANSWERS Detailed, actual production schedule.
Level CORRECT ANSWERS Constant production/workforce.
Changes in inventory to buffer from changing demand.
Level Process CORRECT ANSWERS Forecast cumulative demand.
Use equation to find production (labor hours).
Plug into equation on chart with demand over 6 months.
Most expensive plan.
Level Process with backorders CORRECT ANSWERS Use beginning inventory for
each of 6 months.
Set ending inventory to 0.
Using cumulative demand, solve for monthly production.
With Complete Solutions
Aggregate Production Planning CORRECT ANSWERS A managerial statement of time-
phased production rates, work-force levels, and inventory investment, which takes into
account customer requirements and capacity limitations. Attain best way possible.
What is APP driven by? CORRECT ANSWERS Forecast.
Characteristics of APP CORRECT ANSWERS Time horizon (in general)- medium
(tactical 1-5 yrs).
Time buckets (divisions of horizons).
Rolling horizon.
Plan with the longest time horizon.
What are the 3 types of pure strategies? CORRECT ANSWERS Level, chase, stable
workforce.
Master Production Scheduling (MPS) CORRECT ANSWERS The ungrouping of a
product.
1st level of disaggregation (still some level of aggregation there).
Break down into more real end items.
More specific and frequently revised.
Horizon and buckets are no larger than APP ever.
Implemented on rolling horizon.
Material Requirements Planning (MRP) CORRECT ANSWERS Uses extreme detail, no
aggregate products are used.
Shop Floor Scheduling CORRECT ANSWERS Detailed, actual production schedule.
Level CORRECT ANSWERS Constant production/workforce.
Changes in inventory to buffer from changing demand.
Level Process CORRECT ANSWERS Forecast cumulative demand.
Use equation to find production (labor hours).
Plug into equation on chart with demand over 6 months.
Most expensive plan.
Level Process with backorders CORRECT ANSWERS Use beginning inventory for
each of 6 months.
Set ending inventory to 0.
Using cumulative demand, solve for monthly production.
