The Chase Strategy In-Class Exercise production rate = 15 starting 70 workers Salary $1600/month hire: 500, fire: 1000 per person Firing Month Demand Number Workers (before rounding) Number Workers (after rounding) Number Workers Hired Number Workers Fired Labor Costs ($) Hiring Costs Costs 600 500 1400 1200 1100 Horizon Costs Total Cost The Level Strategy With Inventory and Backorders unit inventory: $20 unit backorder: $50 In-Class Exercise production rate = 15 starting 70 workers Cumul- Number ative Production Demand (CD) salary $1600/month hire: 500, fire: 1000 per person Cumul- ative Ending Ending Back- Prod 'tion Inventory (CP) orders Month Demand Workers Labor Costs (5) Inventory Costs (S) Back- order Costs (S) 1 600 500 1400 1200 1100 500 Total L/I/B Cost Total Cost The Chase Strategy In-Class Exercise production rate = 15 starting 70 workers Salary $1600/month hire: 500, fire: 1000 per person Firing Month Demand Number Workers (before rounding) Number Workers (after rounding) Number Workers Hired Number Workers Fired Labor Costs ($) Hiring Costs Costs 600 500 1400 1200 1100 Horizon Costs Total Cost The Level Strategy With Inventory and Backorders unit inventory: $20 unit backorder: $50 In-Class Exercise production rate = 15 starting 70 workers Cumul- Number ative Production Demand (CD) salary $1600/month hire: 500, fire: 1000 per person Cumul- ative Ending Ending Back- Prod 'tion Inventory (CP) orders Month Demand Workers Labor Costs (5) Inventory Costs (S) Back- order Costs (S) 1 600 500 1400 1200 1100 500 Total L/I/B Cost Total Cost