Which of the following statements is not true about demand chase aggregate planning?
A) It is the simplest approach to aggregate planning.
B) Changes in production levels are dealt with through a buffer of finished goods inventory.
C) Under the demand chase strategy, some costs aren't quantifiable.
D) A pure demand chase strategy is uncommon.
E) Financial costs associated with this plan are the costs of hiring and laying off workers.

Question

Quizplus · Accepted Answer

Demand chase aggregate planning adjusts production rates and workforce levels to directly match demand fluctuations, rather than using a buffer of finished goods inventory to absorb variations in demand.

Which of the Following Statements Is Not True About Demand