Industrial Engineering · Aggregate Production Planning
In a Level Strategy for Aggregate Production Planning, how are periods of customer demand exceeding production capacity typically managed?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Implementing demand forecasting to eliminate inventory reliance.
- 2Using subcontracting and overtime to match demand fluctuations.
- 3Building up inventory during periods of lower demand to meet higher demand later.✓
- 4Outsourcing non-critical production tasks to third-party manufacturers while maintaining constant production levels.
Correct answer
Building up inventory during periods of lower demand to meet higher demand later.
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