Chapter 11 – Aggregate Planning and Master Scheduling
1. Aggregate planning is intermediate-range capacity planning that typically covers a time
horizon of one to three months.
2. The goal of aggregate planning is to achieve a production plan that attempts to balance the
organization’s resources and meet expected demand.
Chapter 11 – Aggregate Planning and Master Scheduling
3. Aggregate planners are concerned with the quality and quantity of expected demand.
4. Aggregate planning is used to establish general levels of employment, output, and
inventories over an intermediate-range of time.
5. The assignment of work to specific machines and people are examples of aggregate
planning.
Chapter 11 – Aggregate Planning and Master Scheduling
6. The output from aggregate planning is a detailed business plan covering the next 2 to 12
months.
7. Demand can be altered in aggregate planning by promotion and producing additional
product using overtime.
8. Capacity can be modified in aggregate planning by promotion and producing additional
product using overtime.
Chapter 11 – Aggregate Planning and Master Scheduling
9. Organizations facing seasonal changes in demand are prevented from using aggregate
planning techniques.
10. Seasonality in demand has the advantage of leveling out requirements for our product or
service.
11. A level capacity strategy is also known as a chase demand strategy.
Chapter 11 – Aggregate Planning and Master Scheduling
12. An advantage of a “chase” strategy for aggregate planning is that inventories can be kept
relatively low.
13. Linear programming models yield the optimal solution.
14. Ultimately the overriding factor in choosing a strategy in aggregate planning is overall
cost.
Chapter 11 – Aggregate Planning and Master Scheduling
15. Aggregate planners commonly use trial-and-error methods in developing aggregate plans.
16. The use of tables and charts in aggregate planning usually enables planners to arrive at an
optimal plan.
17. Aggregate planners typically use mathematical techniques such as linear programming
and linear decision rules for planning.
Chapter 11 – Aggregate Planning and Master Scheduling
18. Disaggregating an aggregate plan leads to a master schedule.
19. The master schedule indicates the quantity and timing for delivery of a product, but not
the dates production will need to start.
20. Departmental budgeting is an example of aggregate planning.
Chapter 11 – Aggregate Planning and Master Scheduling
21. Master schedulers are employed primarily by service organizations.
22. Subcontracting ‘in’ would apply to periods in which our organization has excess capacity.
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.
Chapter 11 – Aggregate Planning and Master Scheduling
24. A time fence in the master schedule is used to prevent unauthorized people from making
changes to the schedule.
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.
26. In the master production schedule, production is planned for the next period whenever the
available-to-promise quantity becomes negative.
Chapter 11 – Aggregate Planning and Master Scheduling
27. Which of the following best describes aggregate planning?
28. Accommodating peak demands and effectively using labor resources during periods of
low demand would be the goal of aggregate planners in
Chapter 11 – Aggregate Planning and Master Scheduling
29. Aggregate planning is capacity planning for:
30. One area to which aggregate planning decisions relate is:
Chapter 11 – Aggregate Planning and Master Scheduling
31. Which of the following is an input to aggregate planning?
32. Essentially, the output of aggregate planning is the:
Chapter 11 – Aggregate Planning and Master Scheduling
33. In doing “aggregate planning” for a firm producing paint, the aggregate planners would
most likely deal with:
34. Aggregate planning requires which of the following information?
Chapter 11 – Aggregate Planning and Master Scheduling
35. Aggregate planners attempt to balance:
36. Which of the following is not an input to the aggregate planning process?
Chapter 11 – Aggregate Planning and Master Scheduling
37. Which one of the following would not be considered a decision option for purposes of
aggregate planning?
38. Which of the following is not a basic option for altering the availability of capacity in a
service environment?
Chapter 11 – Aggregate Planning and Master Scheduling
39. Which one of the following is not a basic option for altering demand?
40. One option for altering the pattern of demand is:
Chapter 11 – Aggregate Planning and Master Scheduling
41. Which of the following would not be a strategy associated with adjusting aggregate
capacity to meet expected demand?
42. One option for altering the availability of manufacturing capacity is:
Chapter 11 – Aggregate Planning and Master Scheduling
43. One option for altering the availability of capacity is:
44. In order to use the “level capacity strategy,” variations in demand are met by:
Chapter 11 – Aggregate Planning and Master Scheduling
45. In using the “chase strategy” variations in demand could be met by:
46. Uncommitted inventory is called