Chapter 13 True/false1. Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.(Introduction)2. Aggregate planning in manufacturing ties organizational strategic goals to a productionplan.(Introduction)3. One of the four things needed for aggregate planning is a logical overall unit for measuring sales and output.(Introduction)4. Plans for new product development generally fall within the scope of aggregate planning.(The planning process)5. One question that operations managers must answer when generating an aggregate plan is should prices or other factors be changed to influence demand. (Aggregate planning strategies )6. In aggregate planning, one of the adjustable elements of capacity is the extent of subcontracting. (Aggregate planning strategies)7. 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. (Aggregate planning strategies)8. Advertising and promotion are methods of manipulating product or service supply in aggregate planning. (Aggregate planning strategies)9. Charting and graphing techniques are easy to understand and use, but are not well-suited for generating optimal strategies. (Methods for aggregate planning)10. The transportation method of linear programming is an optimizing approach to aggregate planning. (Methods for aggregate planning )Multiple choices11. Which of the following statements regarding Anheuser-Busch is false?a. Aggregate planning is a major part of its competitive edge.b. All four stages of beer production are integrated into the aggregate plan.c. High facility utilization complements its successful aggregate planning.d. Its aggregate planning focuses entirely on facilities, ignoring employee issues.e. Even with excellent aggregate planning, its plants need to have high utilization. (Global company profile )12. Which of the following is the term used for medium range capacity planning with a time horizon of three to eighteen months?a. material requirements planningb. short-range planningc. strategic planningd. aggregate planninge. none of the above (Introduction )13. Aggregate planning is capacity planning fora. the long rangeb. the intermediate rangec. the short ranged. typically one to three monthse. typically one or more years (Introduction )14. Which of the following is not one of the four things needed for aggregate planning?a. a logical overall unit for measuring sales and outputb. a method for determining costs, such as hiring, firing, and inventory costs, associated with production schedulesc. a mathematical model that will minimize costs over the intermediate planning periodd. an aggregate demand forecast for an intermediate planning periode. All of these are needed for aggregate planning. (Introduction )15. Which of the following statements about aggregate planning is true?a. Advertising/promotion is a way of manipulating product or service supply.b. Work station loading and job assignments are examples of aggregate planning.c. Overtime/idle time is a way of manipulating product or service demand.d. Aggregate planning uses the adjustable part of capacity to meet production requirements.e. All of the above are true. (The planning process )16. Dependence on an external source of supply is found in which of the following aggregate planning strategies?a. varying production rates through overtime or idle timeb. subcontractingc. using part-time workersd. back ordering during high demand periodse. hiring and laying off (Aggregate planning strategies )17. Which of these is among the demand options of aggregate planning?a. subcontractingb. back-ordering during high-demand periodsc. changing inventory levelsd. varying workforce sizee. All of the above are demand options. (Aggregate planning strategies )18. Which of the following aggregate planning strategies might direct your client to acompetitor?a. using part-time workersb. subcontractingc. changing inventory leveld. varying production rates through overtime or idle timee. varying work force size by hiring or layoffs (Aggregate planning strategies )19. Which of these aggregate planning strategies adjusts capacity to match demand?a. back orderingb. using part-time workersc. counterseasonal product mixingd. changing pricee. None of the above is a capacity option. (Aggregate planning strategies )20. Which of the following aggregate planning strategies is known to lower employee morale?a. yield managementb. varying production rates through overtime or idle timec. changing inventory levelsd. varying work force size by hiring or layoffse. back ordering during high demand periods (Aggregate planning strategies )21. Which of the following is not associated with manipulation of product or service demand?a. price cuts or discountsb. promotionc. subcontractingd. counterseasonal products or servicese. advertising (Aggregate planning strategies )22. Which of the following attempts to manipulate product or service demand?a. inventoriesb. part-time workersc. subcontractingd. overtime/idle timee. price cuts (Aggregate planning strategies )23. Which of the following aggregate planning strategies is a "demand option"?a. changing priceb. subcontractingc. varying production levelsd. changing inventory levelse. using part-time workers (Aggregate planning strategies )24. Which choice best describes level scheduling?a. Daily production is variable from period to period.b. Subcontracting, hiring, and firing manipulate supply.c. Price points are calculated to match demand to capacity.d. Inventory goes up or down to buffer the difference between demand and production.e. Seasonal demand fluctuations are matched without hirings or layoffs. (Aggregate planning strategies )25. In level scheduling, what is kept uniform from month to month?a. product mixb. inventory levelsc. production/workforce levelsd. demand levelse. sub-contracting levels (Aggregate planning strategies )26. Which of the following is not consistent with a pure level strategy?a. varying the use of subcontractingb. variable work force levelsc. little or no use of inventory to meet demand requirementsd. varying production levels and/or work force to meet demand requirementse. All of the above are inconsistent with the pure level strategy. (Aggregate planning strategies )Short Answers27. What four things are needed to develop an aggregate plan? (Introduction )28. List (a) the demand options for aggregate planning; and (b) the