Beginning Workforce = 100 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
Use this information to answer the following 6 questions.
1. If a chase demand strategy is used, the total costs for the production plan (hiring cost, firing cost, and inventory cost) are?
2. If a level production strategy is used, the number of units to produce each quarter is?
3. If a level production strategy is used, the total costs for the production plan (hiring cost, firing cost, and inventory cost) are?
4. Recommend one of these plans to the company, considering both economic and non-economic factors
5. How could demand management help this company? For example, what if they could move up to 20% of demand from one quarter into any adjacent quarter for $1000 in advertising per 1000 units? Would you suggest the company pursue this option? What would this do to your recommendation, and how much money could the company save as a result?
6.
If a chase demand strategy is used, which of the following statements is true?
Group of answer choices
a) The most employees hired or fired in a single quarter is 50.
b) The number of employees hired equals the number of employees fired over the course of the year.
c) 15 people need to be hired at the beginning of Q3.
d) 40 employees need to be laid off at the beginning of Q3.