Which of the Following Statements Regarding Aggregate Planning Is TRUE

question 76

Multiple Choice

Which of the following statements regarding aggregate planning is TRUE?

• A)In a pure level strategy,production rates or work force levels are adjusted to match demand requirements over the planning horizon.
• B)A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies.
• C)Mixed strategies in aggregate planning may utilize inventory,work force,and production rate changes over the planning horizon.
• D)Because service firms have no inventory,the pure chase strategy does not apply.
• E)A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.

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Definitions:

Portfolio of Risky Securities

A collection of investments that contain a degree of risk, with the expectation of achieving higher returns compared to risk-free assets.

Weighted Sum

A mathematical technique where each component is multiplied by a factor reflecting its importance before their sum is computed.

Variance of Returns

A measure of the dispersion of returns for a given security or market index, typically used to gauge the risk associated with a particular investment.

Covariance of Returns

A measure used in finance to assess how two investments move in relation to each other over a period.