CMA Intermediate · Operations Management and Strategic Management · Operations Planning
In operations planning, which of the following best describes the main purpose of aggregate planning?
Aggregate planning fixes overall output, workforce and inventory levels over the medium term, typically 3 to 18 months, for product families rather than individual items. Daily job sequencing is short-term scheduling, and plant location is a long-term strategic decision.
- ADeciding the daily sequence of jobs on each machine
- BDetermining production, workforce and inventory levels for the medium term (roughly 3 to 18 months) in broad product-family termsCorrect
- CSelecting the location of a new plant
- DOrdering individual components for each finished product
Explanation
Aggregate planning is medium-range planning that sets overall output, workforce and inventory levels for product families or aggregate units. Job sequencing is short-term scheduling, plant location is a long-term decision, and component ordering is done through MRP.
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