Question: (b) Use a level production strategy (2 marks) Jan 4.000 Feb 8,000 March 6,000 Apr 2.000 May 8,000 June 2.000 Current workforce Production per worker

(b) Use a level production strategy (2 marks) Jan

(b) Use a level production strategy (2 marks) Jan 4.000 Feb 8,000 March 6,000 Apr 2.000 May 8,000 June 2.000 Current workforce Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting (St) cost Hining cost Firing cost Beginning inventory 10 workers 200 units per month $0.30 per case per month $20.00 per hour $30.00 per hour $40.00 per hour $1,200 per worker $2.400 per worker 3000 units Mth Demand Regular Production Overtime Sic Ending Inventory Workers H F Jan 4,000 Feb 8,000 March 6.000 Apr 2.000 May 8.000 June 2,000 Total 30,000 Total Cost: (c) Between the two strategies which strategy is better and why? (1 mark)

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