(Answered) : Discuss the advantages and the disadvantages of using part-time workers, subcontracting work, and building up inventory as strat

June 27, 2024| admin| 0 Comment| 7:44 pm

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Discuss the advantages and the disadvantages of using part-time workers, subcontracting work, and building up inventory as strategies for meeting demand.

Expert Answer

Below are the advantages and disadvantages of the various strategies for meeting demand –

Part-time workers

Advantages –

1. Demand can be met by hiring part-time workers when required and firing them when not needed.

2. Avoids stockout costs by meeting demand

3. Labor cost savings as employee benefits etc. can be avoided for part-time workers

Disadvantages –

1. Hiring and firing costs

2. Difficulty in finding and recruiting the staff as and when required

3. Quality issues

Subcontracting work

Advantages –

1. Demand can be met by

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(Answered) : Discuss the advantages and the disadvantages of using part-time workers, subcontracting work, and building up inventory as strat

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