Which one of the following statements about sales and operations planning is best?
A) When a firm wants to minimize its inventory investment, it should use a level production-planning strategy.
B) When a firm wants to emphasize stability in its workforce, it should adopt a level production-planning strategy.
C) A make-to-stock production plan that wants to emphasize plant utilization should adopt a chase production strategy.
D) A make-to-stock production plan that wants to minimize changes in production rates should adopt a chase production-planning strategy.

Question

Quizplus · Accepted Answer

A level production-planning strategy maintains a constant production rate while varying inventory levels to meet demand. This approach is beneficial for firms wanting to ensure workforce stability, as it avoids the need for frequent hiring or layoffs that can occur with fluctuating production rates. Choices A, C, and D suggest strategies that do not align with the goals mentioned or misinterpret the strategies' purposes.

Which One of the Following Statements About Sales and Operations