Given an aggregate demand for eight periods are expected to be 400, 300, 600, 600, 500, 40 500 and 700. Cost of hiring is at Rs.100 per unit. Cost of firing is at Rs.50 per unit Subcontracting/Outsourcing cost is at Rs. 50 per unit Carrying cost is Rs. 50 per unit. In the first quarter of the year hiring/firing strategy is used. In the second quarter subcontractir and in the third quarter constant level production is used. (a) Find the system capacity for each of the above strategies? (b) Which is the best strategy for system planning?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Given an aggregate demand for eight periods are expected to be 400, 300, 600, 600, 500, 40
500 and 700.
Cost of hiring is at Rs.100 per unit.
Cost of firing is at Rs.50 per unit
Subcontracting/Outsourcing cost is at Rs. 50 per unit
Carrying cost is Rs. 50 per unit.
In the first quarter of the year hiring/firing strategy is used. In the second quarter subcontractin
and in the third quarter constant level production is used.
(a) Find the system capacity for each of the above strategies?
(b) Which is the best strategy for system planning?
Transcribed Image Text:Given an aggregate demand for eight periods are expected to be 400, 300, 600, 600, 500, 40 500 and 700. Cost of hiring is at Rs.100 per unit. Cost of firing is at Rs.50 per unit Subcontracting/Outsourcing cost is at Rs. 50 per unit Carrying cost is Rs. 50 per unit. In the first quarter of the year hiring/firing strategy is used. In the second quarter subcontractin and in the third quarter constant level production is used. (a) Find the system capacity for each of the above strategies? (b) Which is the best strategy for system planning?
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