Consider BILLY’s Pizza across the street. What is the production process at Billy’s? Does Billy’s follow Level Strategy or Chase Strategy for production? Billy’s purchasing from suppliers – would you recommend Billy’s to follow Level or Chase strategy for purchasing? Develop an aggregate production plan for the following demand forecast for the first six months of the year. Using level strategy, calculate the total cost. Month Demand forecast (units) January 800 February 600 March 900 April 1100 May 1400 June 1200 Other information Constant workforce. No overtime. No stockout. No subcontracting. The firm accumulates inventory during slack months and depletes it during higher demand months. Inventory holding cost $ 10 per unit per month Labor cost $ 10 per hour Shift hours per day 10 Labor hours 2 per unit per worker Number of workers 10 Days per month 20 Daily output (10/2)(10) = 50 units Beginning inventory 20 Ending inventory 0

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Billys follow level strategy I would recommend level strategy for the Billys because it seems to pr... View the full answer