In Order to Use the Level Capacity Strategy, Variations in Demand

question 36

Multiple Choice

In order to use the level capacity strategy, variations in demand are met by:

• A) varying output during regular time without changing employment levels.
• B) varying output during regular time by changing employment levels.
• C) varying output by changing overtime levels.
• D) using combination of inventories, overtime, part time, and back orders.
• E) price adjustments.

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Definitions:

Industries

Broad categories encompassing various companies and organizations involved in the production of goods or services in similar sectors.

Slotting Allowances

Fees paid by product manufacturers or distributors to retailers to secure shelf space for their products or to gain favorable in-store product positioning.

Consumer's Right

The legal entitlements which protect consumers in the marketplace, ensuring they are treated fairly and safeguarded against fraud.

Shelf Space

The area allocated for products in retail outlets, which can influence sales volume due to visibility and accessibility to consumers.