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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.Companiesshouldworkwithdownstreampartnerstoproduceforecastsandwithupstreampartnerstodetermineconstraintswhendoingaggregateplanning.Answer:TrueDifficulty:Easy24.Theaggregateplanshouldbeviewedprimarilyasanin-housetoolthatdoesnotneedtobecommunicatedtosupplychainpartners.Answer:FalseDifficulty:Easy25.Giventhatforecastsarealwayswrongtosomedegree,theaggregateplanneedstohavesomeflexibilitybuiltintoitifitistobeuseful.Answer:TrueDifficulty:Moderate26.Amanagershouldperformsensitivityanalysisontheinputsintoanaggregateplantochoosethebestsolutionfortherangeofpossibilitiesthatcouldoccur.Answer:TrueDifficulty:Moderate27.Asinputsintotheaggregateplanchange,managersdonotneedtomakechangestotheaggregateplan.Answer:FalseDifficulty:Easy28.Ascapacityutilizationincreases,itbecomeslessimportanttoperformaggregateplanning.Answer:FalseDifficulty:ModerateMultipleChoice1.Theprocessbywhichacompanydetermineslevelsofcapacity,production,subcontracting,inventory,stockouts,andevenpricingoveraspecifiedtimehorizonisa.aggregateplanning.b.detailplanning.c.inventoryplanning.d.salesplanning.e.alloftheaboveAnswer:aDifficulty:Moderate2.Thegoalofaggregateplanningistoa.dissatisfycustomersinawaythatmaximizesprofit.b.dissatisfycustomersinawaythatminimizesprofit.c.satisfydemandinawaythatmaximizesprofit.d.satisfydemandinawaythatminimizesprofit.e.noneoftheaboveAnswer:cDifficulty:Easy3.Aggregateplanningsolvesproblemsinvolvinga.aggregatedecisionsandstockkeepingunit(SKU)leveldecisions.b.aggregatedecisionsorstockkeepingunit(SKU)leveldecisions.c.aggregatedecisionsratherthanstockkeepingunit(SKU)leveldecisions.d.stockkeepingunit(SKU)leveldecisionsratherthanaggregatedecisions.e.bandconlyAnswer:cDifficulty:Easy4.Aggregateplanning,tobeeffective,requiresinputsfroma.allcustomers.b.alldepartments.c.allsuppliers.d.throughoutthesupply