QuestionMay 22, 2025

In aggregate planning the concern is over a long-range planning horizon. output levels are set in the face of certain demand. "aggregate" implies that planning is done for a single overall measure of output or at most a few products. firms should never consider overtime, hiring, firing, or subcontracting.

In aggregate planning the concern is over a long-range planning horizon. output levels are set in the face of certain demand. "aggregate" implies that planning is done for a single overall measure of output or at most a few products. firms should never consider overtime, hiring, firing, or subcontracting.
In aggregate planning
the concern is over a long-range planning horizon.
output levels are set in the face of certain demand.
"aggregate" implies that planning is done for a single overall measure of output or at most a few products.
firms should never consider overtime, hiring, firing, or subcontracting.

Solution
3.7(252 votes)

Answer

The statement contains inaccuracies regarding planning horizon, demand certainty, and workforce strategies. Aggregate planning is medium-range, considers uncertain demand, and may involve workforce adjustments like overtime, hiring, firing, or subcontracting. Explanation 1. Define Aggregate Planning Aggregate planning involves determining the quantity and timing of production for the intermediate future, typically 3 to 18 months. 2. Clarify Planning Horizon It focuses on a medium-range planning horizon, not long-range. 3. Address Demand Uncertainty Output levels are set considering uncertain demand, not certain demand. 4. Explain "Aggregate" Concept "Aggregate" implies planning is done for groups of products or overall output measures, not individual products. 5. Consider Workforce Adjustments Firms may consider overtime, hiring, firing, or subcontracting as strategies to meet demand fluctuations.

Explanation

1. Define Aggregate Planning<br /> Aggregate planning involves determining the quantity and timing of production for the intermediate future, typically 3 to 18 months.<br /><br />2. Clarify Planning Horizon<br /> It focuses on a medium-range planning horizon, not long-range.<br /><br />3. Address Demand Uncertainty<br /> Output levels are set considering uncertain demand, not certain demand.<br /><br />4. Explain "Aggregate" Concept<br /> "Aggregate" implies planning is done for groups of products or overall output measures, not individual products.<br /><br />5. Consider Workforce Adjustments<br /> Firms may consider overtime, hiring, firing, or subcontracting as strategies to meet demand fluctuations.
Click to rate:

Similar Questions