In order to use the level capacity strategy, variations in demand are met by
A)varying output during regular time without changing employment levels.
B)varying output during regular time by changing employment levels.
C)varying output by changing overtime levels.
D)using some combination of inventories, overtime, part-time, subcontracting, and back orders.
E)price adjustments.

Question

Quizplus · Accepted Answer

The level capacity strategy involves maintaining a constant output level while meeting demand variations through a combination of strategies such as inventories, overtime, part-time workers, subcontracting, and back orders, rather than by varying the output during regular time or changing employment levels directly.

In Order to Use the Level Capacity Strategy, Variations in Demand