John Jones,senior VP for Zanda Corp

Multiple Choice

John Jones,senior VP for Zanda Corp.,is looking at three alternative aggregate production plans for the next six-month period.At his company,demand varies by month with substantial month-to-month differences.The three alternatives are a "pure level plan," which keeps an absolutely constant workforce,a "pure chase plan" relying on hiring and layoffs,and a hybrid plan.He is most likely to find that the pure level plan:

A) Has lower inventory carrying cost than the hybrid plan.
B) Has higher hiring/layoff cost than the chase plan.
C) Has higher hiring/layoff cost than the hybrid plan.
D) Has higher inventory carrying cost than the chase plan.