If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing:
A) Inventory carrying costs.
B) Hiring and layoff costs.
C) Cost of subcontracting.
D) Both A and C.
E) Both B and C.

Question

Quizplus · Accepted Answer

A level plan maintains a constant production rate, minimizing the need for frequent hiring and layoffs, which are characteristic of a chase plan.

If a Company Strongly Prefers That Its Aggregate Output Plan