A Firm Uses Graphical Techniques in Its Aggregate Planning Efforts

question 29

Multiple Choice

A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period) , it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units. A graph of demand versus level production will show that:

• A) the January requirement is below level production of 420 units.
• B) level production is approximately 1000 units per day.
• C) level production of 420 units per day is below the January requirement.
• D) level production is approximately 420 units per month.
• E) the firm must hire workers between December and January.

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Definitions:

Client-Visits

Instances where a company's representatives meet with clients or potential clients, often to discuss business, maintain relationships, or sell products and services.

Net Operating Income

The profit generated from a company's operational activities, excluding non-operational revenues and expenses.

Flexible Budget

An evolving budget that adjusts to differences in volume or the degree of activity.

Tenant-Days

A metric used in real estate to measure the total number of days tenants occupy a space, often used in the management of rental properties.