A chase demand aggregate planning strategy may result in substantial overtime, undertime, and rate-change costs.

Question

Quizplus · Accepted Answer

Chase demand strategy involves adjusting production to meet the actual demand, which may fluctuate significantly, leading to the need for overtime or undertime hours or changes in production rates. These costs can add up and impact the overall cost of implementing the chase demand strategy.

A Chase Demand Aggregate Planning Strategy May Result in Substantial