Answer the following question either true or false.

Here are the answers to the true or false questions:

• Strategic planning is concerned with the long-term plans of a company.
  • True
• In a continuous production process, components and materials are added as the product moves through the line.
  • True
• After a company decides its strategic plan, they will conduct environmental analysis.
  • False (Environmental analysis is typically done before or during strategic planning.)
• The macro environment involves the actual market in which the company operates.
  • False (The macro environment refers to broader external forces, not just the immediate market.)
• A lack of skillful people and limited financial resources are both examples of strengths that can be present in a company.
  • False (These are examples of weaknesses.)
• When using a concentration strategy, an organisation will concentrate on developing the current markets they operate in more intensely or they will develop new markets for their products.
  • True
• Tactical planning is about matching supply with demand.
  • True
• Capital tied up in inventory is seen as an asset to be sold for money.
  • True
• The company itself can be seen as a supplier in the supply chain.
  • True
• The theory of constraints was developed by Dr Eli Goldratt.
  • True
• The main reason why a bottleneck occurs is because there are no products being processed in a particular production process.
  • False (A bottleneck occurs due to limited capacity, causing a build-up of products.)
• Finance is responsible for the development of a company's product and the product line.
  • False (Product development is primarily handled by R&D, marketing, and operations.)
• One of the goals of the lean manufacturing concept is to eliminate waste.
  • True
• The master production schedule is developed in the strategic planning phase.
  • False (The master production schedule is an operational plan, not part of strategic planning.)
• A constraint is anything that prevents a system from achieving more of its goal.
  • True