Discuss the primary objective and operational parameters of aggregate planning
What will be an ideal response?
Answer: The goal of aggregate planning is to satisfy demand in a way that maximizes profit. Aggregate planning is a process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon. The aggregate planner's main objective is to identify the following operational parameters over the specified time horizon:
• Production rate: the number of units completed per unit time (such as per week or per month).
• Workforce: the number of workers/units of capacity needed for production.
• Overtime: the amount of overtime production planned.
• Machine capacity level: the number of units of machine capacity needed for production.
• Subcontracting: the subcontracted capacity required over the planning horizon.
• Backlog: demand not satisfied in the period in which it arises but carried over to future periods.
• Inventory on hand: the planned inventory carried over the various periods in the planning horizon.
The aggregate plan serves as a broad blueprint for operations and establishes the parameters within which short-term production and distribution decisions are made. The aggregate plan allows the supply chain to alter capacity allocations and change supply contracts.
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Which of the following statements is true of customer lifetime value?
A. Customer lifetime value is a statement explaining how a salesperson's products will effectively solve the buyer's business issue. B. Salespeople lay more emphasis on a single sale rather than the combined value of future sales. C. There is no way to estimate the sum of future sales. D. Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars. E. Customer lifetime value is only measured for transactions involving a solo exchange.
Which of the following is a disadvantage of using 9-box matrices and replacement tables for evaluating follower performance and potential?
A. Candidates who are nominated once are barred from being nominated a second time. B. The vast majority of decisions are based solely on management judgment. C. Organizationss find it difficult to invest differentially in high-potential + high-performance types. D. Candidates' past performance is excluded from these ratings.
Sinesia is a country that has very few sources of potable water. Given this information, which of the following is most likely to happen?
A. Sinesia's international marketing will remain unaffected because petroleum is the only factor that affects international marketing. B. Sinesia will remain an importer of foodstuffs. C. Sinesia will become an attractive target for military intervention. Sinesia will not be having absolute water scarcity. D. Sinesia's wealth will equal that of countries with rich sources of water.
One option for altering the pattern of demand through aggregate planning is
A. pricing. B. carrying inventory. C. using overtime. D. supply management