Question

In order to use the "level output/workforce strategy", variations in demand are met by:

A) varying output during regular time without changing employment levels.
B) keeping output level by changing workforce levels.
C) using some combination of inventories, subcontracting and back orders.
D) Subcontracting
E) relying on overtime to adjust capacity.

Answer 1

The correct answer is B) keeping output level by changing workforce levels.

Step-by-step explanation:

The correct answer is B) keeping output level by changing workforce levels.

With the level output/workforce strategy, the goal is to meet variations in demand without changing employment levels. This means that the output remains constant while the workforce levels are adjusted.

For example, if there is an increase in demand, the company can hire more workers to maintain the output at the same level. Similarly, if there is a decrease in demand, the company can reduce its workforce to match the lower demand.