If a Make-To-Stock Manufacturing Firm with Highly Seasonal Demand Follows

question 19

Multiple Choice

If a make-to-stock manufacturing firm with highly seasonal demand follows a chase demand strategy,which of the following is likely to be true?

• A)Inventory will fluctuate significantly during the year.
• B)The production rate must be set equal to the demand in the heaviest demand period,and it must stay at that level all year.
• C)It will be easy to keep the workforce size stable.
• D)The firm likely will have higher capital investment than if it followed a level plan.

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Definitions:

Enabling Institutions

Institutions designed to support and facilitate the development and growth of individuals, businesses, or communities.

Spend Money

The action of using monetary resources to purchase goods or services.

Life Expectancy

The average period that a person may expect to live, which can be influenced by various factors including genetic, environmental, and lifestyle choices.

Religious Involvement

Participation or engagement in activities, beliefs, or practices related to a particular faith or religion.