Which one of the following is a demand alternative for aggregate planning?
A) Use seasonal inventories to buffer the manufacturing process from variations in customer demand.
B) Offer complementary products or services with contra-cyclical demand requirements.
C) Use overtime and undertime to change workforce levels.
D) Use subcontracting to overcome short-term capacity shortages.

Question

Quizplus · Accepted Answer

Offering complementary products or services with contra-cyclical demand requirements allows a company to smooth out demand throughout the year, rather than dealing with large fluctuations. This helps to provide a more consistent level of production and staffing, making it easier to plan for aggregate levels. The other options listed are supply alternatives, rather than demand alternatives, and may not address the fluctuations in customer demand that need to be considered for effective aggregate planning.

Which One of the Following Is a Demand Alternative for Aggregate