True / False Questions 1. Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months.
FALSE
Difficulty: Medium
TLO: 1
Taxonomy: Knowledge 2. The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.
TRUE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge 3. Aggregate planners are concerned with the quality and quantity of expected demand.
FALSE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge
4. Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time.
TRUE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge 5. The assignment of work to specific machines and people are examples of aggregate planning.
FALSE
Difficulty: Medium
TLO: 1
Taxonomy: Knowledge 6. The output from aggregate planning is a detailed business plan covering the next 2 to 12 months.
FALSE
Difficulty: Easy
TLO: 1
Taxonomy: Knowledge 7. Demand can be altered in aggregate planning by promotion and producing additional product using overtime.
FALSE
Difficulty: Hard
TLO: 2
Taxonomy: Knowledge
8. Capacity can be modified in aggregate planning by promotion and producing additional product using overtime.
FALSE
Difficulty: Hard
TLO: 2
Taxonomy: Knowledge 9. Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques.
FALSE
Difficulty: Medium
TLO: 2
Taxonomy: Knowledge 10. Seasonality in demand has the advantage of leveling out requirements for our product or service.
FALSE
Difficulty: Medium
TLO: 2
Taxonomy: Knowledge 11. A level capacity strategy is also known as a chase demand strategy
