Question

Select all false statements.

A. The output from aggregate planning is a master schedule covering the next 2 to 12 months.

B. Capacity can be modified in aggregate planning by inventory and producing additional product using overtime.

C. Organizations facing seasonal changes in demand are prevented from using chase strategy in aggregate planning.

D. The overriding factor in choosing a strategy in aggregate planning is overall cost.

E. Aggregate planning indicates the quantity and timing for delivery of a product and the dates production will need to start.

F.   An advantage of a chase strategy for aggregate planning is that there is no need to carry inventory.

Answer 1

The false statements are: C and E

A – True

Output from aggregate planning is called master schedule and the aggregate plan usually covers 2 to 12 months.

B – True

Holding inventory and ordering overtime can produce additional capacity.

C – False

Chase strategy can accommodate changes in demand effectively. Thus in case of seasonal changes chase strategy works well.

D – True

The eventual factor in choosing a strategy depends on the cost

E – False

This is MRP and not aggregate planning

F – True

Chase strategy minimizes inventory. In some cases there is no need to carry them.