Exam 8: Aggregate Planning in a Supply Chain

Aggregate planning is an important supply chain issue because,to be effective,it requires inputs from throughout the supply chain,but its results have little impact on the supply chain.

The operational parameter concerned with the subcontracted capacity required over the planning horizon is

The strategy where a stable machine capacity and workforce are maintained with a constant output rate,with inventory levels fluctuating over time,is the

Forecasting errors are dealt with in aggregate plans using either safety backlog or safety capacity.

The aggregate plan should be communicated to

The aggregate planner must make a trade-off between capacity,inventory,and backlog costs.

Which of the following is not a constraint the aggregate planner needs to consider?

Discuss the primary objective and operational parameters of aggregate planning.

Companies should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning.

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

To create an aggregate plan,a company must specify the planning horizon for the plan and the duration of each period within the planning horizon.

When formulating aggregate plans,

Most strategies that an aggregate planner actually uses are in combination,and are referred to as hybrid strategies.

The operational parameter concerned with the amount of overtime production planned is

Aggregate planning solves problems involving

The goal of aggregate planning is to

A planning horizon is usually between three and five years.

________ is used to determine customer service levels.

Which is not reasonable when implementing aggregate planning in practice?

As capacity utilization increases,it becomes less important to perform aggregate planning.