Chapter8AggregatePlanningintheSupplyChainTrue/False1.Thegoalofaggregateplanningistosatisfydemandinawaythatminimizesprofit.Answer:FalseDifficulty:Easy2.Aggregateplanningisaprocessbywhichacompanydetermineslevelsofcapacity,production,subcontracting,inventory,stockouts,andevenpricingoveraspecifiedtimehorizon.Answer:TrueDifficulty:Moderate3.Aggregateplanningsolvesproblemsinvolvingaggregatedecisionsratherthanstockkeepingunit(SKU)leveldecisions.Answer:TrueDifficulty:Easy4.Traditionally,muchofaggregateplanningisfocusedwithinanenterpriseandmaynotalwaysbeseenasapartofsupplychainmanagement.Answer:TrueDifficulty:Moderate5.Aggregateplanningisanimportantsupplychainissuebecause,tobeeffective,itrequiresinputsfromthroughoutthesupplychain,butitsresultshavelittleimpactonthesupplychain.Answer:FalseDifficulty:Moderate6.Short-termproductionservesasabroadblueprintforoperationsandestablishestheparameterswithinwhichaggregateplanningdecisionsaremade.Answer:FalseDifficulty:Easy7.Theaggregateplanningproblemisconcernedwithdeterminingtheproductionlevel,inventorylevel,andcapacitylevel(internalandoutsourced)foreachperiodthatmaximizesthefirm’sprofitovertheplanninghorizon.Answer:TrueDifficulty:Moderate8.Tocreateanaggregateplan,acompanymustspecifytheplanninghorizonfortheplanandthedurationofeachperiodwithintheplanninghorizon.Answer:TrueDifficulty:Easy9.Aplanninghorizonisusuallybetweenthreeandfiveyears.Answer:FalseDifficulty:Moderate10.Apooraggregateplancanresultinimprovedsalesandprofitsiftheavailableinventoryandcapacityareunabletomeetdemand.Answer:FalseDifficulty:Easy11.Apooraggregateplanmayresultinalargeamountofexcessinventoryandcapacity,therebyraisingcosts.Answer:TrueDifficulty:Moderate12.Theaggregateplannermustmakeatrade-offbetweencapacity,inventory,andbacklogcosts.Answer:TrueDifficulty:Moderate13.Anaggregateplanthatincreasesonecosttypicallyresultsintheincreaseoftheothertwo.Answer:FalseDifficulty:Moderate14.Thetimeflexiblestrategyiswheretheproductionrateissynchronizedwiththedemandratebyvaryingmachinecapacityorhiringandlayingoffemployeesasthedemandratevaries.Answer:FalseDifficulty:Hard15.Thetimeflexiblestrategyiswhereworkforce(capacity)iskeptstablebutthenumberofhoursworkedisvariedovertimeinanefforttosynchronizeproductionwithdemand.Answer:TrueDifficulty:Moderate16.Themixedstrategyiswhereastablemachinecapacityandworkforcearemaintainedwithaconstantoutputratewithinventorylevelsfluctuatingovertime.Answer:FalseDifficulty:Hard17.Moststrategiesthatanaggregateplanneractuallyusesareincombination,andarereferredtoasmixedstrategies.Answer:TrueDifficulty:Easy18.Ahighlyeffectivetoolforacompanytousewhenittriestomaximizeprofitswhilebeingsubjectedtoaseriesofconstraintsisaggregateprogramming.Answer:FalseDifficulty:Moderate19.Toimprovethequalityoftheseaggregateplans,forecasterrorsmustbetakenintoaccountwhenformulatingaggregateplans.Answer:TrueDifficulty:Moderate20.Forecastingerrorsaredealtwithinaggregateplansusingeithersafetybacklogorsafetycapacity.Answer:FalseDifficulty:Moderate21.Safetyinventoryisdefinedasinventoryheldtosatisfydemandthatishigherthanforecasted.Answer:TrueDifficulty:Easy22.Safetycapacityisdefinedascapacityusedtosatisfydemandthatislowerthanforecasted.Answer:FalseDifficulty:Easy23.Companiesshouldworkwithdownstreampartnerstoproduceforecastsandwithupstreampartnerstodetermineconstraintswhendoingaggregateplannin...
