In the sales and operations planning process,which of the following is an option for influencing supply?
A)price
B)backorders and reservation systems
C)advertising and promotions
D)use of subcontracting

Question

Quizplus · Accepted Answer

The use of subcontracting is an option for influencing supply in the sales and operations planning process. Subcontracting involves outsourcing some of the production or manufacturing functions to other companies. It can help increase the capacity of the supply chain and improve the flexibility of the production process. This can be a good option when there is an unexpected increase in demand or when there are capacity constraints within the company. Price, backorders and reservation systems, and advertising and promotions are not options for influencing supply in the sales and operations planning process. Price can influence demand, but not supply. Backorders and reservation systems can help manage demand, but do not influence supply. Advertising and promotions can help increase demand, but do not directly influence supply.

In the Sales and Operations Planning Process,which of the Following