Question 1
Which choice best describes level scheduling?
◦ Subcontracting, hiring, and layoffs manipulate supply.
◦ Price points are calculated to match demand to capacity.
◦ Seasonal demand fluctuations are matched without hirings or layoffs.
◦ Inventory goes up or down to buffer the difference between demand and production.
◦ Daily production is variable from period to period.
Question 2
Which of the following statements regarding aggregate planning is
true?
◦ In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the planning horizon.
◦ It turns the material requirements plan into the aggregate plan.
◦ In a mixed strategy, there are changes in both inventory and in work force and production rate over the planning horizon.
◦ A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies.
◦ Because service firms have no inventory, the pure chase strategy does not apply.
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