All of the following statements about using the transportation model to develop an acceptable aggregate plan are true EXCEPT

Exam Question

All of the following statements about using the transportation model to develop an acceptable aggregate plan are true EXCEPT

• 1. The least expensive alternatives often are those in which the output is produced and sold in the same period
• 2. It is possible to disallow backorders by making the back-order cost an impossibly high number
• 3. The transportation model is less useful for chase strategies
• 4. A period’s overtime capacity is generally a percentage of its regular time capacity

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