Question

Which aggregate production planning strategy is most likely to incur high costs due to idle workers?

Answer 1

Answer:

Level Strategy

Explanation:

The main purpose of aggregate production planning is to determine the production, iventory and workforce needed to meet up with varying differences in demand of product.

While CHASE STRATEGY is the aggregate production planning strategy that, reacts quickly to the expected demand slope or changes, which would translate to making frequent and potentialy large changes in the size of the workforce.

Though, cost effective, but considered a pοοr long-run business strategy, due to, Workers who are laίd off may now be engaged or not available when business booms.

Hence, some firms may opted to use LEVEL STRATEGY: which adopt maintaining a stable workforce.

In other words, this strategy is characterized by production of many Ρroducts of low demand by the firm, in retaliation to maintain the steady workforce during this period,

However, making firm to incur debt during the low period.

Therefore, the correct answer is LEVEL STRATEGY

Answer 2

Answer:

The aggregate production planning strategy which is most likely to incur high costs due to idle workers is the LEVEL STRATEGY.

Explanation:

A level strategy seeks to produce an aggregate plan that maintains a constant production rate and/or a fixed employment level.

In order to meet changes in customer demand, the firm must raise or lower inventory levels in anticipation of increased or decreased levels of forecast demand. The firm maintains a level workforce and a steady rate of output when demand is somewhat low.

Because employment level must be fixed,  if workers idle away, the company incurs high costs as a result.

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