A Firm Uses Graphical Techniques in Its Aggregate Planning Efforts

question 29

Multiple Choice

A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period) , it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that:

• A) the January requirement is below level production of 420 units.
• B) level production is approximately 1000 units per day.
• C) level production of 420 units per day is below the January requirement.
• D) level production is approximately 420 units per month.
• E) the firm must hire workers between December and January.

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Definitions:

Differentiation

Refers to the process of distinguishing a product, service, or brand from competitors in ways that appeal to the customer, creating a perceived value over alternatives.

Focused Differentiation

A business strategy where a company targets a specific market niche, offering unique products or services that stand out from competitors.

Subscription-Based

A business model where customers pay a recurring price at regular intervals to access a product or service, rather than a one-time purchase.

Internet Business Model

A strategy outlining how an organization will create value and make money through the use of the internet.