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Section 4Â Â Aggregate Planning Strategies 1) One question that operations managers must answer when generating an aggregate plan is whether prices or other factors should be changed to influence demand. 2) One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs. 3) The strategies of aggregate planning are broadly divided into demand options and capacity options. 4) In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity. 5) When developing an aggregate plan, one of the adjustable elements of capacity is the extent of subcontracting. 6) One motive for using demand-influencing aggregate planning options is to create uses for excess capacity within an organization. 7) The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but it may also reduce quality levels. 8) Advertising and promotion are methods of manipulating product or service supply in aggregate planning. 9) Because service firms do not inventory their output, a pure chase strategy is not appropriate. 10) The level scheduling strategy allows lower inventories than the pure chase strategy.

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