TESTED SOLUTIONS GRADED A+
⩥ Reactive option.
Answer: the operations department uses inventories and back orders to
react to demand fluctuations
⩥ Proactive option.
Answer: marketing tries to shift the demand patterns to minimize
demand fluctuations
⩥ Capacity-Based Options.
Answer: changes output capacity to meet demand
⩥ finished goods inventory.
Answer: used to absorb demand fluctuations; allows your company to
develop a stable work environment
⩥ Shifting demand.
Answer: proactive marketing approach to leveling demand in which
your company tries to change consumer buying patterns by offering
incentives
, ⩥ level aggregate plan.
Answer: maintains a constant workforce and produces the same amount
of product in each time period of the plan
⩥ The level plan is often used with make-to-stock products such as....
Answer: stereos, kitchen appliances, and hardware
⩥ To calculate the number of employees needed....
Answer: divide the number of units needed per month by the monthly
output per employee
⩥ chase aggregate plan.
Answer: produces exactly what is needed to satisfy demand during each
period
⩥ This may be a better option when a company produces make-to-order
products such as custom cabinets, special-purpose equipment, one-of-a-
kind items, or highly perishable products.
Answer: chase aggregate plan
⩥ hybrid aggregate plan.
Answer: uses a combination of options. With this plan, your company
might maintain a stable workforce supplemented by an inventory
buildup and some overtime production to meet demand.