Explain whether a Level or Chase plan is more suitable for the demand pattern

experienced by this particular business, which incidentally relies on highly skilled

workers in the production process. Assume a starting workforce of $7$ and that

fractional workers are permissible.

You should support your answer with numerical data derived from Table $3.$ In

comparing the costs, state any other assumptions made. 

Table $3$:

Units produced per worker

per period $200$

Hiring cost per worker $\pounds 450$

Firing cost per worker $\pounds 150$

Inventory

Holding Cost per

unit per period

$\pounds 7\mathrm{.}50$

Shortage Cost

per unit per

period

$\pounds 10\mathrm{.}50$

Answer rating: 100% (QA)

To determine whether a Level or Chase plan is more suitable for the demand pattern of this business we need to analyze the costs associated with each ... View the full answer