Which of the following statements regarding aggregate planning is true?
A) In a pure level strategy, production rates or workforce 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) In a mixed strategy, there are changes in both inventory and in workforce and production rate over the planning horizon.
D) Because service firms have no inventory, the pure chase strategy does not apply.
E) It turns the material requirements plan into the aggregate plan.

Question

Quizplus · Accepted Answer

A mixed strategy in aggregate planning involves adjusting both inventory levels and workforce/production rates to meet demand fluctuations over the planning horizon. This approach combines elements of both level and chase strategies to balance the costs of changing production rates and holding inventory.

Which of the Following Statements Regarding Aggregate Planning Is True