The table below shows the calculations for the using

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The table below shows the calculations for the using the level strategy Period 1 2 3 4 5 6 Total
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QUESTION-ANSWERS 5 Forecast 630 520 410 270 410 520 2,760 Output 2,700 Regular 450 450 450 450 450 450 Inventory Beginning inventory 300 120 50 90 270 310 Ending inventory 120 50 90 270 310 240 Workers Hired - - - - - - Workers Fired 1 - - - - - Employee 10 9 9 9 9 9 Backorder - - - - - - Costs Regular 21,60 0 21,60 0 21,60 0 21,60 0 21,60 0 21,60 0 1,29,60 0 Hiring - - - - - - - Firing 5,000 - - - - - 5,000 Inventory holding 12,00 0 9,000 27,00 0 31,00 0 24,00 0 24,00 0 108,000 Backorder - - - - - - - TOTAL COSTS 38,60 0 30,60 0 48,60 0 52,60 0 45,60 0 45,60 0 242,600 It is significant to note that firms may opt to use the two aggregate planning strategies either in isolation or by combining both of them. The level strategy aims at producing an aggregate plan that ensures a steady rate of production, as well as a, stays level of employment. Markedly, to ensure the satisfaction of the changes in the demand by customers, businesses must lower or raise their stock levels in expectation of decreased or increased levels of demand forecasts. Similarly, the industry sustains a matching labor force or a stable output rate when the demand is low. As a result, the organization can allow higher levels of inventory that are
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QUESTION-ANSWERS 6 currently required (Samson & Singh, 2016). Moreover, as the demand increases, the business can continue with their continuous production and employment rates, while maintaining the excess inventory to absorb the improved demand. Predominantly, the level strategy helps a company to keep a continuous output level while still meeting their need. As a result, this is desirable from a workers’ relation standpoint. On the other hand, the chase strategy indicates a matching capacity and demand period by period. As a result, this could cause a significant amount of hiring, dismissing of workers,
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