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areyes1234 areyes1234
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6 years ago
Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
 
  Quarter Demand Previous quarter's output 1300 units
  1 1400 Beginning inventory 0 units
  2 1200 Stockout cost 50 per unit
  3 1600 Inventory holding cost 10 per unit at end of quarter
  4 1500 Hiring workers 40 per unit
   Laying off workers 80 per unit
   Subcontracting cost 60 per unit
   Unit cost 30 per unit
   Overtime 15 extra per unit
 
  Which of the following production plans is better: Plan A  chase demand by hiring and layoffs;
  Plan B pure level strategy, or Plan C  1350 level with the remainder by subcontracting?
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schoolboy4367schoolboy4367
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6 years ago
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areyes1234 Author
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6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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Yesterday
Thanks
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2 hours ago
You make an excellent tutor!
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