Asked by Autumn Gilbert on Jun 27, 2024

verifed

Verified

An aggregate planner requires information on constraints.Which of the following is one of the typical constraints for an aggregate planner?

A) Inventory holding cost
B) Labor/machine hours required per unit
C) Stockout or backlog cost
D) Limits on overtime

Aggregate Planner

A tool or professional responsible for developing, analyzing, and maintaining a schedule for an organization's overall operations to meet demand forecast.

Inventory Holding Cost

The total cost associated with storing and maintaining a company's inventory, including warehousing, insurance, taxes, and opportunity costs.

Overtime

Additional time worked by employees beyond the normal working hours, often compensated at a higher pay rate.

  • Identify the typical constraints faced by an aggregate planner and understand the trade-offs involved.
verifed

Verified Answer

SC
Samarth ChakankarJun 29, 2024
Final Answer :
D
Explanation :
Limits on overtime are one of the typical constraints for an aggregate planner. Other typical constraints may include production capacity, lead time, and demand variability. Inventory holding cost, labor/machine hours required per unit, and stockout or backlog cost are factors that may be considered in determining the optimal production plan but are not constraints in and of themselves.