If a Make-To-Stock Manufacturing Firm with Highly Seasonal Demand Follows

Multiple Choice

If a make-to-stock manufacturing firm with highly seasonal demand follows a chase demand strategy,which of the following is likely to be true?

A) Inventory will fluctuate significantly during the year.
B) The production rate must be set equal to the demand in the heaviest demand period,and it must stay at that level all year.
C) It will be easy to keep the workforce size stable.
D) The firm likely will have higher capital investment than if it followed a level plan.