Part I.$$ True$-$False Questions: $1\mathrm{.}5($one and a half$)$ points each.$$ Please mark the answer either by changing T or F to boldface or by writing true or false at the end of the question.$$

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T$$ F$1.$ Aggregate planning or planning by groups of products seeks to find the combination of

monthly work force, production, and inventory levels that minimizes total production$-$

related costs over the planning period.

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T$$ F$2.$ The master production schedule disaggregates the aggregate production plan and

$$ specifies the amount on weekly basis for the manufacture of specific end products.

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T$$ F$3.$ In some firms, product demand can be affected through discount or advertising.

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T$$ F$4.$ The constraints on aggregate planning include union agreements, short$-$term physical

capacity levels, and the amount of money that can be tied up in inventories.$$

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T$$ F$5.$ Aggregate planning considers the costs of regular and overtime labor, hiring, layoffs,

inventory holding, backlogging, and subcontracting.

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T F $6.$ The retailer$$s orders to the wholesaler display greater variability than the end customer sales; the wholesaler$$s orders to the manufacturer show even more variability$($oscillations$),$ and the manufacturer$$s orders to suppliers are the most volatile.

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T$$ F$7.$ Yield or revenue management is the process of allocating the right type of capacity

$$ to the right type of customer at the right price and time to maximize revenue

$$ or yield.