Practice Quiz

Supply Chain Management

Category - Inventory

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___________ results in low levels of inventory in the supply chain and high levels of change in capacity and work force.
  1. Subcontracting.
  2. Resource planning.
  3. A chase strategy.
  4. A production leveling strategy.
Explanation
Answer: C - In a chase strategy capacity is the lever and the production rate is synchronized with the demand rate by varying machine capacity or hiring and laying off employees as the demand rate varies. A chase strategy results low levels of inventory in the supply chain and high levels of change in capacity and work force.
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