A paint company has the following aggregate demand requirements and cost data for the upcoming year by quarter.

a.Determine the change in workforce costs (hiring and firing employees) if the paint company decides to use a chase demand strategy.
b.Determine the inventory holding and backorder costs for the year if the paint company wants to use a level production strategy, ending Quarter 4 with no inventory.

Question

A paint company has the following aggregate demand requirements and cost data for the upcoming year by quarter. 
 
a.Determine the change in workforce costs (hiring and firing employees) if the paint company decides to use a chase demand strategy.
b.Determine the inventory holding and backorder costs for the year if the paint company wants to use a level production strategy, ending Quarter 4 with no inventory.

Quizplus · Accepted Answer

The Answer of A paint company has the following aggregate demand requirements and cost data for the upcoming year by quarter. 
 
a.Determine the change in workforce costs (hiring and firing employees) if the paint company decides to use a chase demand strategy.
b.Determine the inventory holding and backorder costs for the year if the paint company wants to use a level production strategy, ending Quarter 4 with no inventory.

A Paint Company Has the Following Aggregate Demand Requirements and Cost