Aggregate planning for service firms that provide intangible output deals mainly with:
A) smoothing the production rate and finding the optimal size of the workforce.
B) capital investment decisions.
C) centralized purchasing.
D) centralized production.
E) planning for human resource requirements and managing demand.

Question

Quizplus · Accepted Answer

Service firms that provide intangible output focus more on managing demand and human resource requirements since their output is not tangible. For example, a hotel may adjust its workforce and pricing strategy based on expected demand for their services. Thus, option E is the best choice. Options A, B, C, and D may be more relevant for manufacturing firms that deal with tangible goods.

Aggregate Planning for Service Firms That Provide Intangible Output Deals