A Firm Uses the Pure Chase Strategy of Aggregate Planning

question 6

Multiple Choice

A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. In following the chase strategy, the firm will

• A) add 100 units to inventory in the next period
• B) add 200 units to inventory in the next period
• C) hire workers to match the 100 unit difference
• D) lay off workers to match the 200 unit difference
• E) implement a lower price point to increase demand

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Definitions:

Intravenous Therapy

A medical treatment involving the administration of nutrients, medication, or fluids directly into a vein.

Phlebitis

Inflammation of a vein, typically in the legs, which can cause pain, swelling, and redness.

Air Emboli

Air bubbles that enter the bloodstream and can cause dangerous blockages in blood vessels.

Peripherally Inserted Central Catheter (PICC)

A long, flexible tube inserted into a peripheral vein, usually in the arm, and threaded towards the heart for long-term intravenous access.