Regular time production capacity

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Suppose you are using a chase strategy without inventory and back orders (shortages). In chase strategy you have to meet the demand in every period using regular time production, overtime production and subcontracting. There are 40 workers in each period. When demand is less than the regular time production capacity, you produce only the number of units that are demanded and some of the workers may remain idle. You do not hire and fire workers. How many total units are being obtained through subcontracting?

Answer

3080

2480

25,600

1,720

Reference no: EM1322077

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