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

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Assume you are the manager of a shop that assembles power tools. You have just received an order for 55 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws follows: Item Lead Time (weeks) On Hand Saw A B C D E F 2 1 2 2 1 1 2 Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipt Planned order release Ĉ E(3) & E(2) LT = 1 week Lot size: Lot-for-Lot 15 10 5 65 20 10 30 Skip Extension Tip: Double click to open in new tab Show Transcribed Text Develop the material requirements plan for component E using lot-for-lot ordering for all items. (Leave no cells blank - be certain to enter "0" wherever required.) Components A(2), B(1), C(4) E(3), D(1) D (2), F(3) E(2), D (2) Beg. Inv. 1 2 3 190 5 210 6
(a) Use a mixed strategy: Jan – March use level production strategy with Sub-contracting andOT as needed. While April – June use chase demand strategy.
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