Question

Under what circumstances would a company use the following strategies? a) Maintain level output/workforce and let inventories absorb changes in demand. b) Vary the size of the workforce to correspond to changes in demand. c) Maintain a constant workforce, but vary hours worked (through overtime and idle time) to correspond to changes in demand.

Note: (Keep in mind while answering my question) Please provide the full and complete references and in-text citations. I always ask for the citations but, never got citations with my answers. This is the last time i'm seeing if you guys are going to put references or not.

I have provided you the all details already!

Answer 1

a) Maintain level output/workforce and let inventories absorb changes in demand.

Answer a) This strategy should be adopted when the market condition is vulnerable and there is sudden increase and decrease in demand due to atmospheric changes, you should be ready with sudden increase in demand. Same happened with Sanitizer and face mask companies as they went out of stock in this pandemic but now the companies are Maintain a regular level of output and workforce and letting kept inventories/stock absorb changes in demand.

b) Vary the size of the workforce to correspond to changes in demand.

Answer b) This should happen with a old product unit like when a product was successful and product is now heading towards its end life cycle stage so in such kind of conditions the workforce should be varied as per change in demand. This will happen in future when the demand and sale of Sanitizer and face mask will fall down, the companies will then keep variable size of workforce as per the demand

c) Maintain a constant workforce, but vary hours worked (through overtime and idle time) to correspond to changes in demand.

Answer c) This can happen with shoe companies as in Smartphone companies as when a new product is launched like new IPhone the the demand is highest and dealers/customers want to purchase products at so in such cases the constant workforce should be maintained and employees should be given more work and asked to work on batches so this can be done in batches.