Question

The preferred method for situations involving strategic decision making, projects with a high degree of uncertainty, and projects with an unstable scope is the ___________ approach to estimating project time and costs.

Answer 1

The correct answer is Top-Down.

Step-by-step explanation:

In a top-down global plan, the company omits specific details about the global operation. The company develops the top-down plan for the whole period in question. In this approach, the company assumes that it has the correct amount of total capacity and that the required amount of capacity of any necessary part will be available. The company does not take into account all product specific details when using the aggregate planning approach from top to bottom. In addition, this approach does not take into account causes that could delay or alter the production of the product. For example, with a global approach from top to bottom, a company can start with the assumption that it will produce 1,000 products in total over a given period. The company can work backwards to understand many production factors, including how the production of the 1,000 products affects the needs of the company's final line, personnel and spare parts.