Aggregate planning is capacity planning that commonly covers a time horizon of one to 3 months.

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The goal of aggregate planning is to attain a manufacturing arrangement that attempts to balance the organization’s resources and satisfy supposed demand also.
Aggregate planning is used to establish basic levels of employment, output, and also inventories over an intermediate array of time.
Demand also have the right to be altered in accumulation planning by proactivity and creating extra product using overtime.
Capacity have the right to be modified in accumulation planning by promovement and also producing added product utilizing overtime.
Organizations encountering seasonal transforms in demand also are prevented from utilizing accumulation planning methods.
An advantage of a “chase” strategy for aggregate planning is that inventories have the right to be preserved fairly low.
TRUE The job of aggregate planning is to strike a balance between demand also and capacity at minimum cost.
The usage of tables and charts in accumulation planning normally allows planners to arrive at an optimal arrangement.
Aggregate planners frequently use mathematical methods such as straight programming and also direct decision rules for planning.
The grasp schedule indicates the amount and also timing for distribution of a product, yet not the dates manufacturing will certainly have to begin.
Available-to-promise in the first week is equal to start inventory plus MPS amount, if any type of, less committed customer orders prior to the following MPS quantity.
A time fence in the grasp schedule is offered to prevent unauthorized people from making alters to the schedule.
FALSE Time fences are provided to encertain that full consideration is offered once schedule alters are being taken into consideration.
After the first duration of the planning horizon, available-to-promise is computed just for those periods in which there is an MPS amount.
In the master manufacturing schedule, production is planned for the following period whenever before the available-to-promise quantity becomes negative.

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FALSE Production is planned to be complete in the duration in which the projected on-hand becomes negative.
Which of the following best explains accumulation planning?

A. the attach between intermediate-term planning and short-term operating decisions

B. a collection of objective planning tools


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