1) Which approach to capacity management would only be effective if the overall demand across all the products fluctuate (without a pattern) but at the same time capacity is available?

A) Time flexibility from workforce

B) Use of seasonal workforce

C) Use of subcontracting

D) Use of dual facilitiesdedicated and flexible

E) Designing product flexibility into the production processes

2) What type of aggregate planning strategy would we use if overtime costs were low?

A) Level strategy

B) Chase strategy

C) Flexible strategy

D) Variable strategy

3) Offering a promotion during a peak period that has significant increases in consumption

A) Minimizes total profits.

B) Creates a demand pattern less costly to serve.

C) Minimizes total cost

D) Creates greater profits.

E) Shifts demand to make it more level.

4) The primary role of cycle inventory is to allow different stages in the supply chain to

A) Purchase product in lot sizes that maximize the sum of the material, ordering, and holding cost.

B) Purchase product in lot sizes that minimize the sum of the material, ordering, and holding cost.

C) Sell product in lot sizes that maximize the sum of the material, ordering, and holding cost.

D) Sell product in lot sizes that minimize the sum of the material, ordering, and holding cost.