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PROBLEM SITUATION #3 Peter's Peripherals assembles multimedia upgrade kits --- sets of components for adding sound and vidco to desktop computers. The demand for their kits for the next four quarters is estimated in the table below. Unit manufacturing cost for each kit is $160. Holding costs on each kit is $80 per quarter. Any kit that must be delivered late is assessed a backorder cost of $120. Each worker is capable of finishing 10 kits per quarter. If the company chooses to vary work force levels, it will incur costs of $400 for each additional worker: $600 for each termination. The company currently has 28 employees. 2017 - III 280 2017-1V 340 2018-1 360 2018 - IL 300 Demand 1. kits and will Following a pure chase strategy, production in 2008-11 will be require that: a. 300, six workers be terminated b. 300, six workers be added 320, no workers be added d. 240, five workers be terminated none of the above C. e. 2. units, which will Following a pure level strategy, production in 2017 - IV will be result in units of ending inventory at the end of that quarter. a. 340, 60 b. 320,20 340, zero d. 320, zero c. 3. a. In addition to the cost of assembling the kits, the sum of inventory holding costs and backorder costs associated with a pure level strategy would be Zero b. $8,800 c. $4,800 d. $7,200 e. cannot be determined from the data provided at the start of 4. a. In following a pure chase strategy, the company would need to 2018-1 hire two workers b. terminate two workers c. keep the work force steady d. terminate six workers increase demand e. 5. In addition to the unit manufacturing cost, the work force variation costs of a pure chase strategy would be: a. $7,200 b. $3,600 c. $3200 d. $6800 e. None above