Chapter 13 P7 Bicycle Production Plan Solve this problem using Level Strategy and Chase Strategy with the goal of minimizing production costs, labor hours and inventory costs. A. Level Strategy B. Chase Strategy C. Which strategy works best to minimize total cost? Problem A Level Strategy 20 $ 40 Mens Beg Inventory Prodn Cost Mfg Labor (hrs) Assembly Labor (hrs) Desired End Inv 10 3 25 Demand Prodn End Inv Prodn Cost Labor Inv. Cost Month 1 Month 2 150 200 Beg. Inv 20 0 30 30 $ Women's Beg Inventory Prodn Cost Mfg Labor (hrs) Assembly Labor (hrs) Desired End Inv 8 2 30 Demand Prodn End Inv Prodn Cost Labor Inv. Cost Month 1 Month 2 125 150 Beg. Inv 30 0 Month 1 Month 2 Total labor Hrs Total labor Hrs add mens and womens labor hrs add mens and womens labor hrs Total Production Cost Total Inventory Cost Total Cost add mens and womens prodn costs add mens and womens inventory costs Problem B Chase Strategy Use same data as in Problem A Mens Demand Prodn End Inv Prodn Cost Labor Inv. Cost Beg. Inv 20 Month 1 Month 2 150 200 0 Womens Demand Prodn End Inv Prodn Cost Labor Inv. Cost Month 1 Month 2 125 150 Beg. Inv 30 0 Month 1 Month 2 Total labor Hrs Total labor Hrs add mens and womens labor hrs add mens and womens labor hrs Total Production Cost Total Inventory Cost Total Cost add mens and womens prodn costs add mens and womens Inventory costs Problem C Which strategy works best to minimize total cost? Chapter 13 P7 Bicycle Production Plan Solve this problem using Level Strategy and Chase Strategy with the goal of minimizing production costs, labor hours and inventory costs. A. Level Strategy B. Chase Strategy C. Which strategy works best to minimize total cost? Problem A Level Strategy 20 $ 40 Mens Beg Inventory Prodn Cost Mfg Labor (hrs) Assembly Labor (hrs) Desired End Inv 10 3 25 Demand Prodn End Inv Prodn Cost Labor Inv. Cost Month 1 Month 2 150 200 Beg. Inv 20 0 30 30 $ Women's Beg Inventory Prodn Cost Mfg Labor (hrs) Assembly Labor (hrs) Desired End Inv 8 2 30 Demand Prodn End Inv Prodn Cost Labor Inv. Cost Month 1 Month 2 125 150 Beg. Inv 30 0 Month 1 Month 2 Total labor Hrs Total labor Hrs add mens and womens labor hrs add mens and womens labor hrs Total Production Cost Total Inventory Cost Total Cost add mens and womens prodn costs add mens and womens inventory costs Problem B Chase Strategy Use same data as in Problem A Mens Demand Prodn End Inv Prodn Cost Labor Inv. Cost Beg. Inv 20 Month 1 Month 2 150 200 0 Womens Demand Prodn End Inv Prodn Cost Labor Inv. Cost Month 1 Month 2 125 150 Beg. Inv 30 0 Month 1 Month 2 Total labor Hrs Total labor Hrs add mens and womens labor hrs add mens and womens labor hrs Total Production Cost Total Inventory Cost Total Cost add mens and womens prodn costs add mens and womens Inventory costs Problem C Which strategy works best to minimize total cost