2026 PRACTICE SOLUTIONS GRADED A+
● Reactive option. Answer: the operations department uses inventories
and back orders to react to demand fluctuations
● Proactive option. Answer: marketing tries to shift the demand patterns
to minimize demand fluctuations
● Capacity-Based Options. Answer: changes output capacity to meet
demand
● finished goods inventory. Answer: used to absorb demand
fluctuations; allows your company to develop a stable work environment
● Shifting demand. Answer: proactive marketing approach to leveling
demand in which your company tries to change consumer buying
patterns by offering incentives
● level aggregate plan. Answer: maintains a constant workforce and
produces the same amount of product in each time period of the plan
● The level plan is often used with make-to-stock products such as....
Answer: stereos, kitchen appliances, and hardware
, ● To calculate the number of employees needed.... Answer: divide the
number of units needed per month by the monthly output per employee
● chase aggregate plan. Answer: produces exactly what is needed to
satisfy demand during each period
● This may be a better option when a company produces make-to-order
products such as custom cabinets, special-purpose equipment, one-of-a-
kind items, or highly perishable products. Answer: chase aggregate plan
● hybrid aggregate plan. Answer: uses a combination of options. With
this plan, your company might maintain a stable workforce
supplemented by an inventory buildup and some overtime production to
meet demand.
● Sales and operations planning. Answer: integrates the medium-range
functional plans developed by marketing, operations, engineering, and
finance
● aggregate plan. Answer: Includes the budgeted levels of finished
products, inventory, backlogs, workforce size, and aggregate production
rate needed to support the marketing plan
● Also called production plan. Answer: Aggregate plan