Assume you have been assigned the task of identifying a chase strategy aggregate production plan for the coming year.You have been informed that beginning inventory is 500 units,your plan should provide an ending inventory for the year equal to 200 units,and you have been provided the following forecasts of aggregate demand.Knowing that the typical objective of chase plans is to avoid carrying inventory,what should you choose as the planned rate of production for the first quarter?

A) 6,250 units
B) 6,000 units
C) 5,750 units
D) 5,500 units

Question

Assume you have been assigned the task of identifying a chase strategy aggregate production plan for the coming year.You have been informed that beginning inventory is 500 units,your plan should provide an ending inventory for the year equal to 200 units,and you have been provided the following forecasts of aggregate demand.Knowing that the typical objective of chase plans is to avoid carrying inventory,what should you choose as the planned rate of production for the first quarter?

A) 6,250 units 
B) 6,000 units 
C) 5,750 units 
D) 5,500 units

Quizplus · Accepted Answer

6,000 - 500 = 5,500.

Assume You Have Been Assigned the Task of Identifying a Chase