A Firm's Demand in the Next Four Quarters (Its Aggregate

Multiple Choice

A firm's demand in the next four quarters (its aggregate planning horizon) is forecast to be 80, 50, 40, and 90 units. Last quarter, the firm produced 60 units. If it uses level scheduling, the firm will.

A) hire workers to permit production of 65 units per quarter for the next four quarters
B) hire 20 workers
C) have an increase in inventory of 20 units in the next quarter
D) have a decrease in inventory of 5 units in the next quarter
E) change its workforce each quarter so that inventory does not change