Under the demand chase approach to aggregate planning, changes in production levels are dealt with:
A) By using demand promotions
B) By hiring and laying off workers
C) With inventory only
D) With a combination of inventory and part-time workers.

Question

Quizplus · Accepted Answer

The demand chase approach to aggregate planning involves adjusting production rates by hiring and laying off workers to match the demand forecast, thus directly chasing the demand.

Under the Demand Chase Approach to Aggregate Planning, Changes in Production