Question: Operations management help needed, I will like or give thumbs up if answer is correct Olives Company is considering using a pure chase strategy. The
Operations management help needed, I will like or give thumbs up if answer is correct


Olives Company is considering using a pure chase strategy. The company has an inventory balance of 300 units and a work force capable of making 9000 units at the beginning of January. Stockout cost due to loss sale is estimated to be $800 per unit. Monthly inventory holding cost are $20 per unit. Olives estimates that adding capacity will cost $75 per unit and firing capacity will cost $50 per unit. Under this plan which of the following is true. Olives Company is considering using a pure chase strategy. The company has an inventory balance of 300 units and a work force capable of making 9000 units at the beginning of January. Stockout cost due to loss sale is estimated to be $800 per unit. Monthly inventory holding cost are $20 per unit. Olives estimates that adding capacity will cost $75 per unit and firing capacity will cost $50 per unit. Under this plan which of the following is true. Olives will have inventory cost at the end of January of $5500 Olives will spend $500 on hiring at the beginning of January Olives will spend $13,750 on firing at the beginning of January Olives will need to use overtime in April, May and June Olives holding cost will be be a total of $11000 for the entire plan None of the other answers are correct
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