This set of Production Planning and Control Multiple Choice Questions & Answers (MCQs) focuses on “Approaches to Sales and Operation Planning”.
1. What is the output of aggregate planning?
a) Marketing plan
b) Production plan
c) Assignment plan
d) Material requirements plan
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Explanation: Aggregate planning is done to estimate the all the requirements during the production. In other words, it forecasts the production plan of the production processes.
2. What do aggregate planners attempt to balance?
a) Demand and inventories
b) Demand and costs
c) Capacity and inventory
d) Capacity and demand
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Explanation: The primary focus of aggregate planning is to make an estimate of capacity required to produce according to the demand in the market.
3. Which of the following is not an input to the aggregate planning process?
a) Resources available
b) Demand forecast
c) Master production schedules
d) Cost information
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Explanation: For aggregate planning information like what are the resources of the material, what is the demand in the market, what should be the estimated cost for production is needed for forecasting. But master production schedule is an output of aggregate planning.
4. Which of the following is not a basic option for altering the availability of capacity in a service environment?
a) Overtime
b) Layoff
c) Part time
d) Inventory
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Explanation: Inventory is not an option in services. The availability of inventory and its alteration is done before the production plan during the aggregate planning.
5. Which of the following is not a basic option for altering demand?
a) Promotion
b) Backordering
c) Pricing
d) Subcontracting
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Explanation: By increasing the promotion, backordering and decreasing the price, the demand can be altered but by subcontracting only the capacity can be altered.
6. Which one of the following alters the availability of capacity?
a) Use of overtime/slack time
b) Pricing
c) Promotion
d) Backorders
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Explanation: The availability of capacity can be increased if the use of overtime is done properly. Slack time is the time delayed in the process without causing delay in other processes and it is used to alter the capacity.
7. What is the main disadvantage of informal technique used for aggregate planning?
a) They are expensive to do so
b) They may not result in best plan
c) They take a long time to do
d) Lack of formal education of the planners
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Explanation: Aggregate planning should be done in a formal manner because if it is done in an informal manner then there will be errors in the production planning which can lead to failure of the product.
8. What is the more commonly used technique for aggregate planning?
a) Mathematical technique
b) Simulation models
c) Informal trial and error techniques
d) Linear programming optimization
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Explanation: There are two types of techniques used for aggregate planning which are mathematical technique and informal trial and error technique. Informal trial and error is used more frequently as it enables planners to visually compare projected demand requirements with existing capacity.
Sanfoundry Global Education & Learning Series – Production Planning and Control.
To practice all areas of Production Planning and Control, here is complete set of Multiple Choice Questions and Answers.
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