This graph of expected sales level and expected output shows:
A) a chase production plan is being used.
B) a level production plan is being used.
C) a mixed production plan is being used.
D) planning levels have been computed.

Question

This graph of expected sales level and expected output shows: 
A) a chase production plan is being used. 
B) a level production plan is being used. 
C) a mixed production plan is being used. 
D) planning levels have been computed.

Quizplus · Accepted Answer

The graph shows a level production plan, where the expected output remains constant while the expected sales level fluctuates. This implies that the company is producing a steady level of output regardless of demand variations. A chase production plan would show variations in the level of output in response to changes in demand, while a mixed production plan would involve a combination of level and chase production strategies. Computed planning levels may inform the production plan, but are not directly reflected in the graph.

This Graph of Expected Sales Level and Expected Output Shows