Asked by Emily Schreurs on May 11, 2024
Verified
Which of the following statements regarding aggregate planning is true?
A) In a pure level strategy, production rates or workforce 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) In a mixed strategy, there are changes in both inventory and in workforce and production rate over the planning horizon.
D) Because service firms have no inventory, the pure chase strategy does not apply.
E) It turns the material requirements plan into the aggregate plan.
Pure Level Strategy
is an inventory and production control strategy where companies maintain a constant production rate and workforce level, avoiding any production or staffing fluctuations.
Mixed Strategy
A strategy in decision-making or game theory where a player employs a combination of actions or choices to ensure diversity or unpredictability.
- Determine and differentiate the distinct approaches to aggregate planning, namely the chase strategy, level scheduling, and various mixed strategies.
Verified Answer
CG
Caleb GibbonsMay 12, 2024
Final Answer :
C
Explanation :
A mixed strategy in aggregate planning involves adjusting both inventory levels and workforce/production rates to meet demand fluctuations over the planning horizon. This approach combines elements of both level and chase strategies to balance the costs of changing production rates and holding inventory.
Learning Objectives
- Determine and differentiate the distinct approaches to aggregate planning, namely the chase strategy, level scheduling, and various mixed strategies.
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