If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing:
A)Inventory carrying costs.
B)Hiring and layoff costs.
C)Cost of subcontracting.
D)Overtime cost

Question

Quizplus · Accepted Answer

A level plan maintains a constant workforce, minimizing hiring and layoff costs, which are typically higher in a chase plan where production rates vary to match demand.

If a Company Strongly Prefers That Its Aggregate Output Plan