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.

---

Definitions:

Factorial Designs

Experimental strategy that involves testing more than one independent variable at the same time, to study their effects and interactions.

Independent Variable (IV)

A variable in an experiment that is manipulated by the researcher to observe its effect on the dependent variable.

Levels

Refers to the different values or states that an independent variable can take on in an experiment or study.

Main Effects

are the direct impacts of each independent variable on the dependent variable in an experimental study, disregarding interactions between variables.