Producing extra inventory during periods of low demand,which is then consumed during periods of high demand is known as
A)production smoothing.
B)production hedging.
C)production buffering.
D)production stocking.

Question

Quizplus · Accepted Answer

Production smoothing, also known as level production strategy, involves maintaining a constant production rate despite fluctuations in demand. This approach allows companies to produce extra inventory during low demand periods to meet higher demand in future periods without significant changes in production levels.

Producing Extra Inventory During Periods of Low Demand,which Is Then