Aggregate and Capacity Planning

Question 1

What is aggregate planning?

Answer 1

Medium-term capacity planning covering 2 to 18 months to align production with demand.

Question 2

How does aggregate planning relate to capacity planning?

Answer 2

Aggregate planning is a subset of capacity planning focused on medium-term adjustments.

Question 3

What are the three aggregate production strategies?

Answer 3

Chase, Level, and Mixed strategies.

Question 4

Explain the chase strategy.

Answer 4

Adjusts workforce and production levels to meet demand changes.

Question 5

What is the level strategy in aggregate planning?

Answer 5

Maintains steady production rates, using inventory or back orders to handle demand changes.

Question 6

Describe the mixed strategy.

Answer 6

Combines inventory adjustments and workforce changes to respond to demand.

Question 7

How does aggregate planning minimize costs?

Answer 7

By aligning resource planning with demand, reducing overproduction and shortages.

Question 8

What is rough-cut capacity planning?

Answer 8

A short-term planning strategy focused on ensuring adequate resources for immediate production needs

Question 9

What is capacity requirements planning (CRP)?

Answer 9

A process that estimates the resources required for production over a specific time frame.

Question 10

Why are both aggregate and capacity planning critical?

Answer 10

They ensure efficient resource use, align production with demand, and minimize operational costs