Which of the Following Statements Regarding Aggregate Planning Is TRUE

Multiple Choice

Which of the following statements regarding aggregate planning is TRUE?

A) In a pure level strategy, production rates or workforce levels are adjusted to match demand requirements over the planning horizon.
B) A pure level strategy allows lower inventories when compared to pure chase and hybrid strategies.
C) Mixed strategies in aggregate planning may utilize inventory, workforce, and production rate changes over the planning horizon.
D) Because service firms have no inventory, the chase strategy does not apply.
E) A disadvantage of the option of changing inventory levels is that it forces abrupt production changes.