The aggregate planning strategy to be used should be consistent with the environment. Which one of the following pairs of environment and strategy is consistent?
A) ample labor supply; increase backlog for short- term demand surges
B) seasonal requirements and ample, unskilled labor supply; subcontracting
C) skilled labor in short supply; adjust workforce levels
D) low inventory holding cost; build anticipation inventory

Question

Quizplus · Accepted Answer

When inventory holding costs are low, it is cost-effective to build anticipation inventory to meet future demand, making this strategy consistent with the environment.

The Aggregate Planning Strategy to Be Used Should Be Consistent