Question

In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal with: a. Gallons, quarts, pints, and all the different sizes to be produced b. Gallons of paint, but be concerned with the different colors to be produced c. All of the different colors targeted for different markets d. Just gallons of paint, without concern for the different colors and sizes e. All the different sizes and all the different colors by size

Answer 1

D. Just gallons of paint, without concern for the different colors and sizes

Step-by-step explanation:

Aggregate planning is explained to be an operational activity critical to the organization as it looks to balance long-term strategic planning with short term production success.

Thus annual and quarterly plans are broken down into labor, raw material, working capital, etc. requirements over a medium-range period (6 months to 18 months). This process of working out production requirements for a medium range is called aggregate planning.

Also it is noted that a complete information is required about available production facility and raw materials.

A solid demand forecast covering the medium-range period.