Question

All of the following statements concerning the characteristics of aggregate planning for services is true except

Answer 1

Answer:  D. Capacity is easy to predict

Explanation:

Aggregate planning for services involves organising the business areas of companies engaging in service provision or operation companies that also provide a service.

It is generally held that demand is difficult to predict and most services can be inventoried. It is also held that labor is the most constraining resource.

However, capacity in aggregate planning for services is not easy to predict. This is because services are not standadized and are instead varied and mostly unique. Therefore knowing the capacity to give to a service becomes hard to predict.