Disaggregation

question 42

Multiple Choice

Disaggregation:

• A) breaks the aggregate plan into greater detail.
• B) transforms the master production schedule into an aggregate plan.
• C) calculates the optimal price points for yield management.
• D) converts product schedules and labor assignments to a facility-wide plan.
• E) is an assumption required for the use of the transportation model in aggregate planning.

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Definitions:

Internal Rate

Typically refers to the internal rate of return (IRR), which is a rate of return used in capital budgeting to measure and compare the profitability of investments.

Preference Decisions

Choices made between alternatives based on preferences for certain criteria or outcomes.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Dollar

A term referring to the value of a dollar at a specific point in the future, accounting for factors like inflation.