In order to use the "level output/workforce strategy",variations in demand are met by:
A)varying output during regular time without changing employment levels.
B)keeping output level by changing workforce levels.
C)relying on overtime to adjust capacity.
D)using some combination of inventories,subcontracting and back orders.
E)Subcontracting

Question

Quizplus · Accepted Answer

The level output/workforce strategy involves maintaining a constant output level and a consistent workforce level, and variations in demand are met through the use of inventories, subcontracting, and backorders. This approach helps to keep costs low while still meeting customer demand. Option A is incorrect because it involves varying output levels during regular time, which could result in high costs due to increased overtime or hiring and firing workers. Option B is also incorrect because it involves changing workforce levels, which could lead to employee dissatisfaction, high training costs, and low morale. Option C involves relying solely on overtime to adjust capacity, which could result in high labor costs and employee burnout. Option E involves using subcontracting alone, which could be costly and could result in quality control issues.

In Order to Use the "Level Output/workforce Strategy",variations in Demand