1. According to the text, resource planning is the
process of determining the production capacity required to meet demand.

2. The
resource and operations planning done by operations managers is intended to
balance capacity and output.

3. According
to the text, the goal of resource planning is to minimize the discrepancy
between an organization’s capacity and demand results.

4. According
to the text, a firm should always run its operations at 100 percent capacity to
ensure changes affecting demand can be met.

5. MRP
systems are simply a more modern version of the ERP systems of the 1980’s.

6. MRP
is the production planning system intended to develop long-range plans (more
than a year away) concerning product families manufactured by the organization.

7. A
Master Production Schedule is a medium-range materials plan.

8. The
three basic production strategies for addressing the aggregate planning problem
are the chase production strategy, the level production strategy, and the mixed
production strategy.

9. The
Chase Production Strategy relies on a constant output rate and capacity while
varying inventory and backlog levels to handle the fluctuating demand pattern.

10. A
Mixed Production Strategy uses a blend of chase and level strategies by
striving to maintain a stable core workforce while using other means like
temporary workers to manage short-term high demand.