The sales and operations planning strategy to be used should be consistent with the business environment. Which one of the following pairs of business environment and strategy is consistent?
A) skilled labor in short supply; adjust workforce levels
B) low inventory holding cost; build anticipation inventory
C) ample labor supply; increase backlog for short-term demand surges
D) seasonal requirements and ample, unskilled labor supply; subcontracting

Question

Quizplus · Accepted Answer

Building anticipation inventory is a strategy that aligns well with a business environment where inventory holding costs are low. This approach involves producing or purchasing goods in advance of demand, which is feasible and cost-effective when the cost of storing these goods is minimal.

The Sales and Operations Planning Strategy to Be Used Should