Aggregate Planning for Services Is More Difficult Than Aggregate Planning

question 74

Multiple Choice

Aggregate planning for services is more difficult than aggregate planning for manufacturing because _____ and _____ are more difficult to predict.

• A)capacity availability; customer tastes
• B)holding costs; overtime costs
• C)demand; capacity availability
• D)capacity change costs; holding costs
• E)hiring costs; holding costs

---

Definitions:

Marked-To-Market

Marked-to-market refers to the practice of valuing assets or financial instruments based on their current market prices.

Option Contract

A financial derivative that provides the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a specific time period.

Forward Contract

A derivative financial contract obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.

Swap Contract

An agreement by two parties to exchange, or swap, specified cash flows at specified intervals in the future.