Aggregate Planning for Services Is More Difficult Than Aggregate Planning

question 74

Multiple Choice

Aggregate planning for services is more difficult than aggregate planning for manufacturing because _____ and _____ are more difficult to predict.

• A)capacity availability; customer tastes
• B)holding costs; overtime costs
• C)demand; capacity availability
• D)capacity change costs; holding costs
• E)hiring costs; holding costs

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Definitions:

Profit Maximizing

The method or approach of aligning production and pricing to maximize profit.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Monopsony Power

The market power held by a single buyer to influence the price at which they purchase goods or services.

Elasticity Of Supply

The degree to which the quantity supplied of a good changes in response to a change in its price.