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:

Labor Productivity

This term refers to the amount of goods and services produced per hour worked, indicating the efficiency of labor in the economy.

Per-Worker Production Function

A measure of the relationship between the average output produced by each worker and the inputs used in production.

Capital Per Worker

The average amount of capital (tools, machinery, etc.) available for each employee in the production process.

Net Present Value (NPV)

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by summing the present values of incoming and outgoing cash flows over the life of the investment.