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CHAPTER 13: AGGREGATE PLANNING TRUE/FALSE 1. High levels of efficiency at Anheuser-Busch are the result of excellence in aggregate planning and in high facility utilization. True (Global company profile, easy) 2. Aggregate planning occurs over the medium or intermediate future of 3 to 18 months. True (Introduction, easy) 3. The only objective of aggregate planning is to minimize the cost of matching capacity to demand over the planning period. False (Introduction, easy) 4. Aggregate planning in manufacturing ties organizational strategic goals to a production plan. True (Introduction, moderate) 5. One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output. True (Introduction, moderate) 6. Plans for new product development generally fall within the scope of aggregate planning. False (The planning process, moderate) 7. The aggregate planning process usually includes expediting and dispatching of individual products. False (The planning process, moderate) 8. Disaggregation is the process of breaking the aggregate plan into greater detail; one example of this detail is the Master Production Schedule. True (The nature of aggregate planning, Moderate) 9. One question that operations managers must ask when generating an aggregate plan is what factors are likely to influence demand and by how much. True (Aggregate planning strategies, easy) 10. One of the demand options of aggregate planning is to vary the workforce by hiring or firing. False (Aggregate planning strategies, moderate) 11. The strategies of aggregate planning are broadly divided into demand options and capacity options. True (Aggregate planning strategies, easy) 12. In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity. True (Aggregate planning strategies, easy) 13. In aggregate planning, one of the adjustable elements of capacity is the extent of subcontracting. True (Aggregate planning strategies, easy)
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14. One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization. True (Aggregate planning strategies, moderate) 15. The use of part-time workers as an aggregate planning option may be less costly than using full- time workers, but may also reduce quality levels. True (Aggregate planning strategies, moderate) 16. Advertising and promotion are methods of manipulating product or service supply in aggregate planning. False (Aggregate planning strategies, moderate) 17. Because service firms do not inventory their output, pure chase strategy is not appropriate. False (Aggregate planning strategies, moderate) 18. The level scheduling strategy allows lower inventories than the pure chase strategy. False (Aggregate planning strategies, moderate)
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