The advantages of the level capacity strategy include 1 The utilization of operational resources throughout the year 2 Efficient level of production can be maintained 3 Decreases the marginal cost The disadvantages of the level capacity strategy include 1 If there is any change in the demand of the customer there is a risk ofLEVEL STRATEGY A level strategy seeks to produce an aggregate plan that maintains a steady production rate and/or a steady employment level In the context of the problem posted by you following the level strategy means incurring additional subcontracting costs at least twice This is to offset the shortfall in production because of the levelA firm should tend toward a levelcapacity strategy, particularly in its personnel policies, when employees are required to have high skill levels and to work with minimal supervision and must exercise personal discretion in dealing with customers Such jobs typically have high recruitment and training costs, so low turnover is essential These
Strategy Under Uncertainty
