One Thing That Makes Aggregate Planning in Services Easier Than

question 26

Multiple Choice

One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is:

• A) inventory is cheaper to hold.
• B) labor availability is more predictable.
• C) inventory is less perishable.
• D) labor is more flexiblE.
• E) demand is less variable.

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Definitions:

Market Wage Rate

The prevailing rate of pay for a specific job in the competitive labor market, determined by supply and demand for labor.

Labor

The human effort, including physical and mental exertion, used in the production of goods and services.

Marginal Product

Marginal product refers to the increase in output that results from employing one more unit of a particular input while keeping other inputs constant.

Power Cords

Electrical cables that connect an appliance, device, or equipment to the main electricity supply.