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Social Science Clinic => Business => Management => Topic started by: sabina on Dec 3, 2019

Title: Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming ...
Post by: sabina on Dec 3, 2019

Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.

Quarter	Demand	​	Previous quarter's output	1300 units
1	1400	​	Beginning inventory	0 units
2	1200	​	Stockout cost	$50 per unit
3	1600	​	Inventory holding cost	$10 per unit at end of quarter
4	1500	​	Hiring workers	$40 per unit
​	​	​	Laying off workers	$80 per unit
​	​	​	Subcontracting cost	$60 per unit
​	​	​	Unit cost	$30 per unit
​	​	​	Overtime	$15 extra per unit

Which of the following production plans is better: Plan A—chase demand by hiring and layoffs; Plan B—pure level strategy, or Plan C—1350 level with the remainder by subcontracting?

Title: Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming ...
Post by: alexisweber49 on Dec 3, 2019

Plan A will cost $215,000, Plan B will cost $179,500, and Plan C will cost $183,500. Plan B is the cheapest, by a small margin.

Plan A


Plan B


Plan C

Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
Post by: Jeffrey Berndt on Nov 12, 2020

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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
Post by: alm321 on Apr 27, 2021

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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
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Title: Re: Osprey Fabrication has the following aggregate demand requirements and other data for the upcomi
Post by: ARAVIND K VARGHESE on Nov 27, 2022

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