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1. Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months. True False 2. The goal of aggregate planning is to achieve a production plan that attempts to balance the organization’s resources and meet expected demand. True False 3. Aggregate planners are concerned with the quality and quantity of expected demand. True False 4. Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time. True False 5. The assignment of work to specific machines and people are examples of aggregate planning. True False 6. The output from aggregate planning is a detailed business plan covering the next 2 to 12 months. True False 7. Demand can be altered in aggregate planning by promotion and producing additional product using overtime. True False 8. Capacity can be modified in aggregate planning by promotion and producing additional product using overtime. True False 9. Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques. True False 10. Seasonality in demand has the advantage of leveling out requirements for our product or service. True False 11. A level capacity strategy is also known as a chase demand strategy. True False 12. An advantage of a “chase” strategy for aggregate planning is that inventories can be kept relatively low. True False 13. Linear programming models yield the optimal solution. True False 14. Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost. True False 15. Aggregate planners commonly use trial-and-error methods in developing aggregate plans. True False 16. The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan. True False 17. Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning. True False 18. Disaggregating an aggregate plan leads to a master schedule. True False 19. The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start. True False 20. Departmental budgeting is an example of aggregate planning. True False 21. Master schedulers are employed primarily by service organizations. True False 22. Subcontracting ‘in’ would apply to periods in which our organization has excess capacity. True False 23. Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity. True False 24. A time fence in the master schedule is used to prevent unauthorized people from making changes to the schedule. True False 25. After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity. True False 26. In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative. True False

1. Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months. True False  2. The goal of aggregate planning is to achieve a production plan that attempts to balance the organization’s resources and meet expected demand. True False  3. Aggregate planners are concerned with the quality and quantity of expected demand. True False  4. Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time. True False  5. The assignment of work to specific machines and people are examples of aggregate planning. True False  6. The output from aggregate planning is a detailed business plan covering the next 2 to 12 months. True False  7. Demand can be altered in aggregate planning by promotion and producing additional product using overtime. True False  8. Capacity can be modified in aggregate planning by promotion and producing additional product using overtime. True False  9. Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques. True False  10. Seasonality in demand has the advantage of leveling out requirements for our product or service. True False  11. A level capacity strategy is also known as a chase demand strategy. True False  12. An advantage of a “chase” strategy for aggregate planning is that inventories can be kept relatively low. True False  13. Linear programming models yield the optimal solution. True False  14. Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost. True False  15. Aggregate planners commonly use trial-and-error methods in developing aggregate plans. True False  16. The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan. True False  17. Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning. True False  18. Disaggregating an aggregate plan leads to a master schedule. True False  19. The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start. True False  20. Departmental budgeting is an example of aggregate planning. True False  21. Master schedulers are employed primarily by service organizations. True False  22. Subcontracting ‘in’ would apply to periods in which our organization has excess capacity. True False  23. Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity. True False  24. A time fence in the master schedule is used to prevent unauthorized people from making changes to the schedule. True False  25. After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity. True False  26. In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative. True False

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