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

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ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
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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
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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