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BIT 3414 Quiz 3 with verified answers rated A+

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BIT 3414 Quiz 3 with verified answers rated A+

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BIT 3414 Quiz 3 with verified answers
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What are the primary strategies for adjusting capacity? - ANS ✔✔Level Production and Chase
Demand



Level Production - ANS ✔✔uses inventory to absorb fluctuations in demand. would have you
produce at the average demand line. Extra Costs: keeping inventory on hand



Chase Demand - ANS ✔✔change workforce levels so that production matches demand (hiring
and firing). Extra Costs: hiring and firing during times of high or low production demand



What are the three main supplemental strategies? - ANS ✔✔Overtime, Subcontract, and
Backordering



Overtime - ANS ✔✔increase working hours. Extra Cost: overtime pay



Subcontract - ANS ✔✔shift production to other firms. Extra Cost: profit goes to the other
company



Backordering - ANS ✔✔customer waits for product to be produced in a later time period. Extra
Cost: compensate the customers for waiting



What are the three main tools used to develop production plans? - ANS ✔✔Trial and Error,
Transportation Method, and Linear Programming

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