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

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Definitions:

Observational Studies

Research methods that involve assessing subjects without manipulating the environment or the participants, used to identify and describe natural occurrences.

Statistical Correlation

A measure that indicates the extent to which two or more variables fluctuate together, showing how one variable is linearly related to another.

Correlate

To have a mutual relationship or connection, where one thing affects or depends on another.

Large

Of considerable or relatively great size, extent, capacity, or quantity.