Two basic types of decision alternatives are used to arrive at acceptable production or staffing plans: capacity alternatives and demand alternatives.If an organization that faces seasonal demand uses a reactive approach,which one of the following actions is it most likely to implement?
A) introduction of complementary products
B) creating a stock of anticipation inventory
C) advertising to generate demand during off-peak periods
D) discounting products in off-peak periods

Question

Quizplus · Accepted Answer

A reactive approach to seasonal demand involves creating a stock of anticipation inventory to meet the increased demand during peak periods. This allows the organization to avoid stockouts and lost sales, as well as potentially reduce production costs by producing in larger quantities. The other options - introducing complementary products, advertising to generate demand during off-peak periods, and discounting products in off-peak periods - are more proactive approaches that aim to influence demand rather than simply react to it.

Two Basic Types of Decision Alternatives Are Used to Arrive