Asked by Petergay Senior on Jul 21, 2024

verifed

Verified

Which of the following statements about aggregate planning is false?

A) Hiring, layoffs, overtime, and subcontracting are methods of manipulating capacity.
B) Aggregate planning produces a plan detailing which products are made and in what quantities.
C) Yield management is a way of manipulating product or service demand.
D) Aggregate planning uses the adjustable part of capacity to meet production requirements.
E) The transportation method is an optimizing technique for aggregate planning.

Yield Management

Capacity decisions that determine the allocation of resources to maximize profit or yield.

Transportation Method

A mathematical technique used in logistics and operations research to determine the most cost-effective way of distributing goods from several suppliers to several consumers.

  • Master the core parts and targets of aggregate planning.
  • Recognize the various strategies and choices present in aggregate planning, such as options for managing demand, adjusting capacity, and employing hybrid approaches.
  • Gain insight into how strategies for manipulating demand, including advertising and promotional activities, affect aggregate planning processes.
verifed

Verified Answer

DT
Dahlia ThomasJul 22, 2024
Final Answer :
B
Explanation :
Aggregate planning produces a plan detailing how much of each product is made, not which products are made. The decision of which products to make is typically made at a more detailed level of planning, such as master scheduling or daily scheduling.