Question

If a company is following a chase production plan, which of the following is NOT true?...

If a company is following a chase production plan, which of the following is NOT true? Select one: a. The workforce size can be varied by hiring or layoffs.

b. Production rates are varied through overtime/idle time or hiring part-time workers.

c. Inventories are accumulated during low demand periods.

d. Work can be subcontracted to increase output during peaks.

e. All of these statements are true.

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Answer #1

1. C. Inventories are accumulated during low demand periods

Being that a chase strategy represents lean methodology, we would use varying the production line, layoffs and other factors to match the demand that has been set and not store inventories.

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