EE Company has the following aggregate demand requirements and data for the upcoming four quarters. Which of the following production plans has lower cost, Plan A using chase demand or Plan B using pure level strategy or C using 1350 evel with subcontracting if needed. * Period 1 Demand Previous output 1300 units 1,400 Beginning Inventory O units Inventory holding cost Hiring workers 1,200 P10.00 1,600 P40.00 1.500 Stockout cost P50.00 12 34
EE Company has the following aggregate demand requirements and data for the upcoming four quarters. Which of the following production plans has lower cost, Plan A using chase demand or Plan B using pure level strategy or C using 1350 evel with subcontracting if needed. * Period 1 Demand Previous output 1300 units 1,400 Beginning Inventory O units Inventory holding cost Hiring workers 1,200 P10.00 1,600 P40.00 1.500 Stockout cost P50.00 12 34
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:EE Company has the following aggregate demand requirements and data for the
upcoming four quarters. Which of the following production plans has lower cost,
Plan A using chase demand or Plan B using pure level strategy or C using 1350
level with subcontracting if needed. *
Period 1 Demand
Previous output
1300 units
1
1,400
Beginning Inventory
0 units
1,200
Inventory holding cost
P10.00
3.
1,600
Hiring workers
P40.00
1,500
Stockout cost
P50.00
Firing workers
Subcontracting cost
P80.00
P60.00
Unit cost
P30.00
Overtime
P15.00
Plan A
Plan B
Plan C
2m4
OOO
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