Which One of the Following Statements About Aggregate Planning Is

question 62

Multiple Choice

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

• A) When a firm wants to minimize its inventory investment, it should use a level production planning strategy.
• B) When a firm wants to emphasize stability in its workforce, it should adopt a level production planning strategy.
• C) A make-to-stock production plan that wants to emphasize plant utilization should adopt a chase production strategy.
• D) A make-to-stock production plan that wants to minimize changes in production rates should adopt a chase production planning strategy.

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Definitions:

Intermittent Processes

Describes production or operational processes that are not continuous but occur at intervals or irregularly.

Repetitive Focus

A manufacturing strategy where the same products or services are produced repetitively over a period, aiming for efficiency and consistency.

Cross-Over Point

The point where two different plans, strategies, or costs meet and produce the same outcome or value.

Variable Cost

Expenses that fluctuate in relation to the volume of output or business activity. A reiteration that emphasizes the dependency on production levels.