Question

Currently the firm has 100 workers who produce 1000 units per quarter each. The cost per unit is $35.00. The cost of holding 1 unit per quarter is $1.50. The cost of hiring a worker is $100. The cost of firing a worker is $500. When using the pure chase strategy, what is the total cost for the year? The quarterly demand information is provided below. Q1:20,000 units, Q2:100,000 units, Q3:60,000 units, Q4:140,000 units

Answer 1

Answer:

Explanation:

Generally, these various options fall into two “pure strategies” – they’re the chase strategy and an  level strategy. Illustrating the chase strategy, production is influenced either positive or negatively as demand varies. Going by the principles of the level strategy, production will remains at a steady level in spite of demand variations.

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