19) A firm uses graphical techniques in its aggregate planning efforts. Over the

Question

19) A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period), it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that: A.    the January requirement is below level production of 420 units. B.    level production is approximately 1000 units per day. C.   level production of 420 units per day is below the January requirement. D.   level production is approximately 420 units per month. E.    the firm must hire workers between December and January. 19) A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period), it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that: A.    the January requirement is below level production of 420 units. B.    level production is approximately 1000 units per day. C.   level production of 420 units per day is below the January requirement. D.   level production is approximately 420 units per month. E.    the firm must hire workers between December and January.

Explanation / Answer

19. Answer- C.  Level production of 420 units per day is below the January requirement. Aggregate Planning is a marketing activity which prepares an aggregate plan for the production process in advance of 6 to 18months to help the management of the Company in deciding the amount of raw materials needed for the production. Same way, in the above problem as he firm is using aggregate planning efforts, the graph represents the level of production for that month.

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