The Aggregate Plan Needs to

question 9

Multiple Choice

The aggregate plan needs to

• A)be a final product because changes are disruptive to the supply chain.
• B)be considered fixed because forecasts are usually accurate.
• C)have some flexibility built into it because forecasts are always wrong.
• D)have some flexibility built into it because forecasts are usually right.

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Definitions:

Departmental Unit

A division within an organization with specific responsibilities, often based on function, product line, or geographical area.

Overhead Costs

Expenses related to the operation of a business that are not directly associated with the production of goods or services, such as rent and utilities.

Batch Set-ups

The process of preparing and adjusting equipment and processes for a specific batch of production.

Complexity

The state or quality of being intricate or complicated, often used to describe systems, processes, or situations that are difficult to understand or manage.