level output strategy

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An approach to aggregate planning that aims to regulate production at a constant level, regardless of fluctuation in demand. It involves storing the product in times of low demand and is not therefore an option available to the providers of services. The benefits include maintaining a stable workforce and the optimum use of capacity. The disadvantages include the costs of storage and the difficulty of responding to major changes in demand. Compare chase demand strategy.

Subjects: Business and Management.

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