Question

To meet short range changes in demand of a product, the following strategies may be considered.
1. Overtime
2. Subcontracting
3. Building up inventory
4. New investments

Which of the options given below gives the correct strategies ?

• A. 1 and 2
• B. 1, 2 and 3
• C. 2 and 3
• D. 1, 3 and 4

Answer 1

The correct option is B 1, 2 and 3

To meet short range changes in demand of a product, the following strategies can be considered ;

• Building and utilising inventory through constant workforce.
• Varying the size of the workforce.
• Overtime utilisation.
• Subcontracting.
• New investment increases capacity and is long term in nature.