A firm uses the chase strategy of aggregate planning. It produced 900 units in the last period.
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Question:
A firm uses the chase strategy of aggregate planning. It produced 900 units in the last period. Demand in the next period is estimated at 1000, and demand over the next six periods (its aggregate planning horizon) is estimated to average 1000 units. Which of the following tactics would be most representative of following a chase strategy?
A. Add 200 units to inventory in the next period
B. Implement a lower price point to increase demand
C. Add 100 units to inventory in the next period
D. Lay off workers to match the 200-unit difference
E. Hire workers to match the 100-unit difference
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