If Forecast Demand Exceeds the Total Factory or Supply Capacity

question 54

Multiple Choice

If forecast demand exceeds the total factory or supply capacity, managers might simply decide not to meet forecast demand. This decision would most likely be made at which planning level?

• A)Aggregate planning - Level 1
• B)Disaggregation - Level 2
• C)Execution - Level 3
• D)Capacity requirements planning

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Definitions:

Interest

Interest refers to the cost of borrowing money, usually expressed as a percentage of the principal loan amount, or the income earned from investment.

Mortgage

A type of loan specifically used to purchase real estate, in which the property itself is used as collateral against the debt.

Lender's Investment

The amount of money lent by a creditor to a borrower, expecting a return on the investment often through interest or profits.

Borrower

An individual or entity that receives funds from another party with the agreement to return the funds or pay them back later, usually with interest.