CMA Intermediate · Operations Management and Strategic Management · Production Planning and Control
Which of the following is a pure 'chase' strategy in aggregate planning?
A chase strategy varies the workforce through hiring and layoffs so that production in each period equals that period's demand. This keeps inventory minimal, unlike a level strategy, which holds output steady and lets inventory absorb demand fluctuations.
- AProducing a constant monthly quantity and absorbing demand swings through inventory
- BVarying the workforce size through hiring and layoffs so that output matches monthly demandCorrect
- CKeeping output fixed and subcontracting all peaks to vendors
- DUsing only overtime on a fixed workforce to cover every shortfall
Explanation
A chase strategy matches production to demand period by period, typically by hiring and laying off workers. A level strategy holds output constant and uses inventory, so option one is wrong.
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