Which of the Following Statements About Aggregate Planning Is TRUE

question 91

Multiple Choice

Which of the following statements about aggregate planning is TRUE?

• A) An advantage of the counterseasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs.
• B) In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand.
• C) A pure chase strategy allows lower inventories when compared to a pure level scheduling.
• D) A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise.
• E) The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small.

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Definitions:

ADH Production

The process by which the posterior pituitary gland secretes antidiuretic hormone (ADH), which helps control the balance of water in the body by affecting the kidneys.

Na+

Sodium ions, essential electrolytes in bodily fluids that play key roles in nerve impulse transmission and muscle contraction.

Extracellular Fluid

The fluid that exists outside the cells, providing a medium for the transport of substances and facilitating cellular interactions.

Intracellular Fluid

The fluid contained within the cells, making up about two-thirds of the total body water content and providing a medium for cellular processes.