Question

Which of the following best describes aggregate operations planning?

A) Integrating several planning techniques to develop an MPS
B) Linking long term capacity decisions with intermediate term production
C) An operations plan to support sales forecasting
D) Using predicted demand to plan the general levels of employment, output, and inventories required
E) An employee scheduling technique

Answer 1

Aggregate operations planning is best described by option 'D', which involves using predicted demand to plan employment, output, and inventory levels in the intermediate term.

Step-by-step explanation:

The question 'Which of the following best describes aggregate operations planning?' concerns the scope of aggregate planning in operations management. The most accurate description is 'D) Using predicted demand to plan the general levels of employment, output, and inventories required'. This involves taking into account projected demand to determine optimal levels of workforce, production, and stock to meet that demand efficiently. It is a vital component in managing production systems to align them with business objectives.

Aggregate planning is a strategic approach aiming to balance demand and capacity by manipulating production rates, labor levels, inventory, and other operational variables in the intermediate term. It is typically carried out for a period of 3 to 18 months ahead. This process is highly important as it contributes directly to the fulfillment of customer demand and the achievement of the company's financial targets.