The Standard Equation Used by Gigi Enterprises for Production Planning

question 23

Multiple Choice

The standard equation used by Gigi Enterprises for production planning is Production = Demand. The sales and operations planner is probably using:

• A)a mixed production approach.
• B)a level production approach.
• C)a chase production approach.
• D)a bottom-up planning approach.

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Definitions:

Special Order

A one-time customer order often requiring a deviation from the standard product line or service offerings, potentially at a different pricing or cost structure.

Outside Supplier

An external entity that provides goods or services to a company, often used in the context of manufacturing or production.

Required Units

The amount of products that need to be produced to meet customer demand or sales forecasts.

Supplying Commitment

An agreement or pledge by a supplier to provide a specified quantity of product to a purchaser at a predetermined time and price.