An Advantage of the Level Strategy for Aggregate Operations Planning

question 7

Multiple Choice

An advantage of the Level strategy for aggregate operations planning is which of the following?

• A)Purchased items from vendors can be delivered when and where needed
• B)High Level of scheduling allows for workers to have lots of overtime
• C)System can better accommodate unexpected large orders
• D)Financial requirements are minimized through lower finished goods inventory
• E)It is easier to apply linear programming or simulation

---

Definitions:

Production

The process of creating goods and services, involving both the conversion of raw materials into finished products and the creation of value.

Year Ended

The conclusion of a 12-month accounting period, at which financial statements are prepared to summarize the year's transactions.

Direct Materials Used

The cost of raw materials that are directly involved in the production of goods.

Raw Materials

The basic materials and components required at the start of the production process to manufacture goods.