Question

The Driftbuster Sno-Mobile repair company has a seasonal demand for its service, and there is a general shortage of skilled Sno-Mobile mechanics in it's region. Which one of the following aggregate planning choices is most suitable for this situation

A. Allow some backorder for short-term demand surges
B. Combination of allowing backorder for short-term demand surges and building anticipation inventories.
C. Combination of hiring/firing workers to match demand and building anticipation inventories.
D. Combination of allowing backorder for short-term demand surges and offering reduced prices during the slack season.

Answer 1

Answer: Combination of allowing backorder for short-term demand surges and building anticipation inventories.

Step-by-step explanation:

From the question, we are informed that the Driftbuster Sno-Mobile repair company has a seasonal demand for its service, and there is a general shortage of skilled Sno-Mobile mechanics in its region.

Based on the situation above, the planning choice is to allow backorder for short-term demand surges and build anticipation inventories. Since demand is seasonal, it's vital for the company to build anticipation inventories. It's also important for the company to create orders for short term surges.