The fundamental trade-offs available to an aggregate planner are between
A)capability,inventory,and backlog costs.
B)capability,inventory,and sales costs.
C)capacity,inventory,and backlog costs.
D)capacity,inventory,and sales costs.

Question

Quizplus · Accepted Answer

The fundamental trade-offs available to an aggregate planner are between capacity, inventory, and backlog costs. The capacity refers to the amount of resources available, inventory refers to the amount of finished goods or raw materials in stock, and backlog refers to the amount of work that is yet to be completed. The aggregate planner must balance these three factors to optimize production while minimizing costs. Sales costs cannot be controlled by the aggregate planner and are not a variable in this trade-off. Therefore, option C is the correct answer.

The Fundamental Trade-Offs Available to an Aggregate Planner Are Between