Strategy for aggregate production planning


Suppose a company is using pure chase strategy for its aggregate production planning. Which of the following policies would a manager use to deal with (or hedge against) the fluctuation in demand?

A. Hire additional workers when demand increases and outplace them when demand decreases

B. Stock up excessive inventory during the periods of low demand.

C. Purchase the shortages from subcontractors.

D. Allow the employees to work overtime when the demand is low.

E. All of the above

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Business Management: Strategy for aggregate production planning
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