Skip to content

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.

  1. AProducing a constant monthly quantity and absorbing demand swings through inventory
  2. BVarying the workforce size through hiring and layoffs so that output matches monthly demandCorrect
  3. CKeeping output fixed and subcontracting all peaks to vendors
  4. 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.

Did you get it right without looking?

One question tells you little. A timed set on Production Planning and Control shows your real accuracy, how long you take and where you lose marks.

More Production Planning and Control questions