A Firm Uses the Pure Chase Strategy of Aggregate Planning

question 84

Multiple Choice

A firm uses the pure chase strategy of aggregate planning.It produced 1000 units in the last period.Demand in the next period is estimated at 800,and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units.Which of the following tactics would be most representative of following a chase strategy?

• A)add 100 units to inventory in the next period
• B)add 200 units to inventory in the next period
• C)hire workers to match the 100-unit difference
• D)lay off workers to match the 200-unit difference
• E)implement a lower price point to increase demand

---

Definitions:

Nitrogen

Nitrogen is a chemical element with the symbol N and atomic number 7; it is a colorless, odorless gas that is a fundamental part of amino acids and nucleic acids, essential for life.

Carbon Dioxide

A gas without any color or smell, emanating from the burning of compounds containing carbon and the respiratory process, absorbed by vegetation in the process of converting light into energy.

Carbon Cycle

The series of processes by which carbon compounds are interconverted in the environment, chiefly involving the incorporation of carbon dioxide into living tissue by photosynthesis and its return to the atmosphere through respiration, the decay of dead organisms, and the burning of fossil fuels.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms that were buried millions of years ago.