Questions
MGS*3100*01.2025FA Test 03: Chap 10,11
True/False
A level strategy matches demand during the planning horizon by keeping the workforce level or the output rate constant.
Options
A.True
B.False
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
The question presents a statement about level strategy in aggregate production planning and asks whether it is true or false.
Option 1: True. The essence of a level strategy is to keep either the workforce level (headcount) or the output rate constant over the planning horizon. When capacity is fixed in this way, the firm adjusts inventory, backorders, or unmet demand to absorb any fluctuations in demand that occur ......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Question at position 3 In a Level Strategy, which of the following is/are true?inventory is accumulated during low demand months for use during high demand months.hiring and layoffs of workers is not allowed.the production level closely follows the demand pattern.a & b are true
Table 10.2 Archie Toys is a retailer operating out of Wichita, Kansas. It experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. The workforce requirements (expressed as number of employees) are given in the following table for the next six periods. Costs associated with operations are as follows: Wages = $800 per worker per month Hiring cost = $300 per worker Layoff cost = $200 per worker The current workforce level is nine workers, and the undertime is paid for. Use the spreadsheet approach and the preceding data to answer the following questions. Use the information in Table 10.2. The total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs but no overtime, is:
Table 10.1 A manufacturing firm uses a level utilization production-planning horizon of three months. They have developed a forecast for the coming three months that appears in the table. They can add no more than 5% of their production capacity as overtime and can order no more than 10% of a month's regular capacity via subcontractors. The company has a zero backorder policy but has space for a maximum of 250 items in their finished-goods inventory. All extra costs are shown in the table. October November December Forecasted Demand 2,100 1,900 2,350 Regular Capacity 2,000 2,000 2,000 Workforce level Overtime ($50/unit) Subcontracting ($120/unit) Inventory holding ($15/unit) Total Cost Use the information in Table 10.1. What is the ending inventory for the month of October corresponding to the least cost production plan?
Table 10.1 A manufacturing firm uses a level utilization production-planning horizon of three months. They have developed a forecast for the coming three months that appears in the table. They can add no more than 5% of their production capacity as overtime and can order no more than 10% of a month's regular capacity via subcontractors. The company has a zero backorder policy but has space for a maximum of 250 items in their finished-goods inventory. All extra costs are shown in the table. October November December Forecasted Demand 2,100 1,900 2,350 Regular Capacity 2,000 2,000 2,000 Workforce level Overtime ($50/unit) Subcontracting ($120/unit) Inventory holding ($15/unit) Total Cost Use the information in Table 10.1. How many units are produced using subcontracting for the month of December corresponding to the least cost production plan?
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!