Question

What is the main disadvantage(s) of informal techniques used for aggregate planning?

1) Lack of accuracy in forecasting
2) Difficulty in coordinating with different departments
3) Inability to handle unexpected changes
4) All of the above

Answer 1

The main disadvantage of informal aggregate planning techniques is that they often result in lack of accuracy, difficulty in coordinating with different departments, and an inability to handle unexpected changes, which means the correct answer is 'All of the above.'

Step-by-step explanation:

The main disadvantages of informal techniques used for aggregate planning in business relate to the broad challenges of forecasting and coordination within an organization. Specifically, informal planning may lead to a lack of accuracy in forecasting demand or supply needs. Additionally, without a formal structure, it can be difficult to coordinate across different departments, leading to inefficiencies and misalignments. Lastly, informal systems are often less agile, and therefore, they may struggle with the inability to handle unexpected changes in the market or internal processes.

In summary, while the question lists 3 separate issues, they all stem from the inherent weaknesses of informal systems compared to more structured approaches to planning. Thus, the appropriate answer to the student's question is option 4: All of the above.