Which One of the Following Statements About Aggregate Planning Is

question 78

Multiple Choice

Which one of the following statements about aggregate planning is best?

• A) A production plan generally focuses on production rates and inventory holdings, whereas a staffing plan focuses on staffing and other labor-related factors.
• B) Capacity alternatives are actions that adjust demand patterns.
• C) Operations and marketing are the only two functional areas that supply inputs for developing production and staffing plans.
• D) A level strategy stabilizes inventory levels by adjusting production rates or staff levels to match demand levels over the planning horizon.

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Definitions:

Price Effect

The impact on demand when the price of a product or service changes, influencing consumers' buying decisions.

Marginal Cost

The additional expense required to produce an extra item or unit of output, emphasizing its role in economic decision-making.

Fixed Cost

A cost that does not change with the amount of goods or services produced, such as rent, salaries, or loan payments.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in the market, often illegal or regulated by law.