Which statement describes the mixed production strategy?

Which statement describes the mixed production strategy?

• A. Maintains stable core workforce while using overtime, subcontracting, and part-time helpers to manage short-term demand
• B. Adjusts capacity by hiring and laying off
• C. Maintains constant inventory
• D. Produces only make-to-stock

Answer: (A)

A mixed production strategy keeps a stable core workforce and adds flexible capacity when needed, using overtime, subcontracting, and part-time helpers to handle short-term demand. This approach preserves skills and reduces the disruption and costs of constantly hiring or laying off workers, while still allowing quick response to demand spikes or dips. The other options describe different approaches: adjusting headcount to match demand is a chase strategy focused on permanent hiring/firing; maintaining constant inventory centers on inventory levels rather than how the workforce is managed; and producing only to stock is about making products in advance to fill anticipated demand rather than balancing a steady core workforce with flexible capacity.

A mixed production strategy keeps a stable core workforce and adds flexible capacity when needed, using overtime, subcontracting, and part-time helpers to handle short-term demand. This approach preserves skills and reduces the disruption and costs of constantly hiring or laying off workers, while still allowing quick response to demand spikes or dips. The other options describe different approaches: adjusting headcount to match demand is a chase strategy focused on permanent hiring/firing; maintaining constant inventory centers on inventory levels rather than how the workforce is managed; and producing only to stock is about making products in advance to fill anticipated demand rather than balancing a steady core workforce with flexible capacity.