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Which of the following aggregate planning strategies is not a supply option? 1-Subcontract 2-Varying production levels...

Which of the following aggregate planning strategies is not a supply option?

1-Subcontract

2-Varying production levels

3-changing inventory levels

4-changing price

EOQ technique is generally preferred when inventory holding costs are extremely high. T OR f

Business   Operations-Management   
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Homework Answers

Answer #1

Answer 1 : 4. Changing price

Explanation : As changing price is a demand option in aggregate planning strategies while the supply option refers to the strategies used while supply chain activities such as subcontracting, changing the inventory or production level to meet the demand.

Answer 2 : False

Explanation : A lot for lot technique is been generally preferred when the inventory holding cost is been higher as lot for lot technique as the volume of orders are greater as compared to the fixed lot size system.

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