Which of the following statements regarding aggregate planning is TRUE?
A)In a pure level strategy,production rates or work force levels are adjusted to match demand requirements over the planning horizon.
B)A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies.
C)Mixed strategies in aggregate planning may utilize inventory,work force,and production rate changes over the planning horizon.
D)Because service firms have no inventory,the pure chase strategy does not apply.
E)A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.

Question

Quizplus · Accepted Answer

Mixed strategies in aggregate planning may utilize inventory, work force, and production rate changes over the planning horizon. This statement is true. A pure level strategy, as mentioned in option A, adjusts production rates or work force levels to match demand requirements over the planning horizon. Option B states that a pure level strategy allows lower inventories compared to pure chase and hybrid strategies, which is false. A pure chase strategy, mentioned in option D, may not apply to service firms because they often do not have inventory, but this does not make the statement true. Option E mentions a disadvantage of changing inventory levels, but this does not make the statement true either.

Which of the Following Statements Regarding Aggregate Planning Is TRUE