If a service firm were to attempt level scheduling for aggregate planning, should its level of output be at average demand, peak demand, or minimum demand?
What will be an ideal response?
This is a critical-thinking question for students. The answer depends on the ability of customers to reschedule or reserve service times, and upon the organization's view toward lost sales. Level = average if customers can reserve or reschedule. Level = maximum if the organization wishes to prevent lost sales.
You might also like to view...
Buyer bob and seller sam decided to wait until sam's listing agreement with XYZ real estate agency has expired, to avoid paying a commission. Does the firm have any legal resources?
A. Yes, the listing agent can pursue criminal charges B. Yes, the listing agent can sue Bob under the listing agreement C. Yes, the lsiting agent can sue Sam under the lsiting agreement D. No, the listing agent has no further resources
Given the following distribution:
Outcome Value of Random Variable Probability A 1 .4 B 2 .3 C 3 .2 D 4 .1 The expected value is 3.