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Table 3: Units produced per worker per period 200 Hiring cost per worker £450 Firing cost per worker £150 Inventory £7.50 Holding Cost per unit per period Shortage Cost £10.50 per unit per period Jul Aug Sep Oct Νον Dec Demand (Units) 600 700 2400 1900 1700 800 Cumulative Demand (Units) Production per Period Cumulative Production Cumulative Demand minus Cumulative Production Ending Inventory Back Orders

Table 3: Units produced per worker per period 200 Hiring cost per worker £450 Firing cost per worker £150 Inventory £7.50 Holding Cost per unit per period Shortage Cost £10.50 per unit per period Jul Aug Sep Oct Νον Dec Demand (Units) 600 700 2400 1900 1700 800 Cumulative Demand (Units) Production per Period Cumulative Production Cumulative Demand minus Cumulative Production Ending Inventory Back Orders

Marketing
Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 11DRQ
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i). Complete the table for a Chase production plan.

ii). Explain whether a Level or Chase plan is more suitable for the demand pattern experienced by this particular business, which incidentally relies on highly skilled workers in the production process. Assume a starting workforce of 7 and that fractional workers are permissible.

You should support your answer with numerical data derived from Table 3. In comparing the costs, state any other assumptions made.

Table 3: Units produced per worker per period 200 Hiring cost per worker £450 Firing cost per worker £150 Inventory £7.50 Holding Cost per unit per period Shortage Cost £10.50 per unit per period
Transcribed Image Text:Table 3: Units produced per worker per period 200 Hiring cost per worker £450 Firing cost per worker £150 Inventory £7.50 Holding Cost per unit per period Shortage Cost £10.50 per unit per period
Jul Aug Sep Oct Νον Dec Demand (Units) 600 700 2400 1900 1700 800 Cumulative Demand (Units) Production per Period Cumulative Production Cumulative Demand minus Cumulative Production Ending Inventory Back Orders
Transcribed Image Text:Jul Aug Sep Oct Νον Dec Demand (Units) 600 700 2400 1900 1700 800 Cumulative Demand (Units) Production per Period Cumulative Production Cumulative Demand minus Cumulative Production Ending Inventory Back Orders
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