December demand rates of production crew both 1600 units, Ask an Expert

Management Studies

Q. president of Hill Enterprises, Terri Hill, projects firms aggregate demand requirements over next 8 months as follows:

Jan 1,400 May 2,200
Feb 1,600 June 2,200
Mar 1,800 July 1,800
Apr 1,800 Aug 1,400

Plan A: Vary workforce level to execute a "chase" strategy by producing quantity demanded in prior month. December demand rates of production crew both 1,600 units per month. Cost of hiring additional workers is $5,000 per 100 units. Cost of lying off workers is $7,500 per 100 units. Evaluate this plan.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9311903

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