An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT which of the following?
A) production rates
B) labor levels
C) inventory levels
D) overtime work
E) facility capacity

Question

Quizplus · Accepted Answer

An aggregate plan is a high-level tactical plan that determines the overall level of resources required to satisfy forecast demand over the planning horizon. The plan is meant to minimize cost while meeting demand. To achieve this, the plan can potentially adjust production rates, labor levels, inventory levels, and overtime work, as they directly affect the resources in the production process. However, facility capacity cannot be adjusted in the short term, which means that it is not one of the variables that can be changed in an aggregate plan. Therefore, the correct answer is E.

An Aggregate Plan Satisfies Forecast Demand by Potentially Adjusting All