Adjusting available capacity by hiring and firing workers to match demand is an example of a(n)________ strategy.
A)level production
B)chase demand
C)mixed production.
D)optimal production.

Question

Quizplus · Accepted Answer

Chase demand strategy adjusts available capacity by hiring and firing workers according to the demand. This strategy helps to reduce inventory cost, but it may increase labor cost. Therefore, it is suitable for businesses that have a high degree of demand variability.

Adjusting Available Capacity by Hiring and Firing Workers to Match