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:

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors influence the economic decisions of individuals and institutions.

Neoclassical Economics

An economic thought framework that emphasizes the determination of goods, outputs, and income distributions in markets through supply and demand.

Behavioral Economics

A branch of economics that examines the impact of psychological, cognitive, emotional, cultural, and social influences on the economic choices made by individuals and institutions.

Hedonic Treadmill

The observed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes.