Question: In Problem 4, suppose the market for the Road Warrior has increased by 2,000 units per month. Consider these three strategies: (a) level production at

In Problem 4, suppose the market for the Road Warrior has increased by 2,000 units per month. Consider these three strategies: (a) level production at 3,000 units with overtime and subcontracting, (b) level production at 4,000 units with backorders, and (c) pure chase demand. Which strategy would you recommend?

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a Level production at 3000 with overtime and subcontracting Total cost of regular production 120000000 Overtime cost 10500000 Total cost of carrying i... View full answer

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