Question: Q2, kindly please answer with step (3 marks) (b) Use a chase demand strategy Jan Feb 4,000 8,000 March 6.000 Apr 2.000 May 8,000 June

Q2, kindly please answer with step

(3 marks) (b) Use a chase demand strategy Jan Feb 4,000 8,000 March 6.000 Apr 2.000 May 8,000 June 2.000 Current work force Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting wage rate Hiring 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 S40.00 per hour $1.200 per worker $2,400 per worker 4000 units Mth Regular Production Overtime Sik Demand 4.000 Ending Inventory Workers HF Jan 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? 2

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