Which One of the Following Statements Concerning Aggregate Planning Alternatives

question 67

Multiple Choice

Which one of the following statements concerning aggregate planning alternatives is best?

• A) Building anticipation inventory during the slack season is a demand alternative a firm can follow to satisfy seasonal demand patterns.
• B) Adjusting workforce levels is an attractive capacity alternative when the cost of training and unemployment compensation is high.
• C) Creating anticipation inventory has the advantage of increasing customization.
• D) Using overtime is an undesirable option when the overtime wage premium is high and sustained levels of top worker productivity are important.

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Definitions:

Collective Agreement

A written contract between an employer and a union representing the employees, outlining terms of employment, salaries, and working conditions.

Notice to Bargain

A formal notification by one party to another indicating the intention to discuss and negotiate terms, typically in employment or union contexts.

Worker's Compensation

Insurance that provides wage replacement and medical benefits to employees injured in the course of their employment.

Insurance Scheme

A designed plan by an insurance company offering coverage to protect against possible eventuality.