A Firm Uses the Pure Chase Strategy of Aggregate Planning

question 6

Multiple Choice

A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. In following the chase strategy, the firm will

• A) add 100 units to inventory in the next period
• B) add 200 units to inventory in the next period
• C) hire workers to match the 100 unit difference
• D) lay off workers to match the 200 unit difference
• E) implement a lower price point to increase demand

Learn to match different budgeting terms with their respective definitions.

Gain insight into how budgets are used for planning, control, and decision-making purposes.

Analyze and interpret financial data from operations to assess a company's performance.

Understand the various techniques management may employ to manipulate a company's reported performance.

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Definitions:

Transformational Leadership

A style of leadership where the leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of the group.

Directing Efforts

The act of guiding or managing resources and activities towards achieving specific goals.

Rewards

Benefits, recognition, or compensation provided to individuals to recognize their efforts, achievements, or behaviors.

Vroom-Jago

A leadership model that focuses on decision-making processes and emphasizes the situational factors affecting the choice of leadership behaviors.