ENTREPRENEURIAL OPERATIONS
PRODUCTION PLANNING AND CONTROL
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
results in high levels of inventory
|
|
|
negative effect on workforce morale
|
|
|
large backlogs may accumulate
|
|
|
none above
|
Detailed explanation-1: -Disadvantage of level strategy is high inventory and increase back logs. As the name suggests, chase strategy looks to dynamically match demand with production. Advantage of chase strategy is lower inventory levels and back logs. Disadvantage is lower productivity, quality and depressed work force.
Detailed explanation-2: -Disadvantages:-Inventory holding cost may increase.-Shortages may result in lost sales.-Hiring, layoff, and training costs may be significant.
Detailed explanation-3: -The chase strategy is one method organizations use to maintain a level inventory while producing at varying rates in order to support demand. The chase strategy is sometimes referred to as demand matching because the strategy varies production to meet demand.