Exam 12: Aggregate Planning and Sop

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Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.    Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; or Plan B-produce at a constant rate of 1200 and obtain the remainder from overtime? Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; or Plan B-produce at a constant rate of 1200 and obtain the remainder from overtime?

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Because service firms do not inventory their output, a chase strategy is not appropriate.

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