Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

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What is a characteristic of the level production strategy?

Production levels fluctuate with demand

A consistent production amount throughout the year

A characteristic of the level production strategy is a consistent production amount throughout the year. This strategy aims to maintain steady production rates regardless of fluctuations in demand. By producing a uniform output, businesses can optimize their operations, manage costs more effectively, and reduce the risks associated with inventory surpluses or shortages.

Unlike other strategies that adjust production levels in response to market demand or workforce size, the level production approach focuses on stabilizing the production process. This allows companies to plan their resources, reduce the risk of overtime costs, and minimize disruptions in the production schedule.

The other choices highlight characteristics that are not aligned with the level production strategy. For instance, fluctuating production levels with demand counters the essence of maintaining consistency, while focusing on short-term demand spikes suggests a more reactive approach. Regular changes in workforce size also contradict the stability intrinsic to a level production strategy, which typically seeks to keep staffing levels consistent to support steady output.

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Focus on short-term demand spikes

Regular changes in workforce size

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