Which of the Following Statements Regarding Aggregate Planning Is TRUE

question 88

Multiple Choice

Which of the following statements regarding aggregate planning is TRUE?

• A) In a pure level strategy, production rates or workforce levels are adjusted to match demand requirements over the planning horizon.
• B) A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies.
• C) Mixed strategies in aggregate planning may utilize inventory, workforce, and production rate changes over the planning horizon.
• D) Because service firms have no inventory, the chase strategy does not apply.
• E) A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.

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Definitions:

Variety

Refers to the range of different products, services, or choices available in a particular area or sector.

Monopolistic Competition

A trading structure with many entities vending items that are akin but not identical, providing them with some form of market authority and the option to set their products apart.

Market Structure

The organizational and other characteristics of a market, including the level of competition and distribution of market power among firms.

Monopolistic Competition

An economic context characterized by a multitude of firms offering items that are related but not clones, providing them an edge in the market.