Final answer:
The statement that a firm must use the same SAP planning strategy for all its products is false. SAP provides multiple planning strategies to accommodate the distinct needs of different products, allowing businesses to optimize resource allocation and manage costs effectively. Option 2 is correct answer.
Step-by-step explanation:
The question is asking whether a firm has to use the same SAP planning strategy for all of its products. The answer to this question is false. SAP offers a range of planning strategies to cater to the diverse requirements of different products. Each product can have its individual planning strategy tailored to its unique market demand, production process, and business objectives.
For instance, a product in high demand with a stable forecast may use a strategy that focuses on maintaining high levels of inventory, whereas a product with unpredictable demand might use a lean strategy to avoid excess stock. This flexibility allows a firm to better manage the cost and efficiency of its operations.
Moreover, market conditions often dictate changes in production technology. For example, when the cost of machines increases, a shift from capital-intensive to labor-intensive production might be considered, choosing the technology that offers the lowest total cost. It is a strategic decision that could improve financial outcomes by optimizing resource allocation.