Play Time Toy Company

PLAN B:

The service firm should not adopt level monthly production.

ADVANTAGES:

1. The labor will remain the same in as much as the workers were already averse in their routinary jobs. Any change in their routinary jobs might even confuse them. Hence, production and labor will not create any problem and instead come hand in hand through and through.

2. Supply of goods is maintained. There is no need to change volume of production because what is produced is easily consumed thus, less cost in production. No need to stock merchandise or goods and no need warehouses to stock the goods because supplies are always in demand.

3. Further, since supplies are easily consumed, the quality of goods remains at its best as it was produced. No supplies remain idle thus, they are considered straight from the manufacturer

DISADVANTAGES:

1. There is risk of overconfidence thinking that just because production and labor go hand in hand and observing routinary measures and activities, the company will no longer aim to improve more or think of better alternatives for a better product.

2. During lull season, there is reduction of labor and production. Thereafter, during peak season, production is in boom. To increase production during peak season, there is a need to hire new workers. Hiring new workers entails the risk of quality of labor because new labor force might not be as efficient as the previous manpower.

3. Because of increased production and labor force, the tendency is to do overtime works ergo, more overtime pays for labor force and the more overtime pays the more costly for the company. In some, increase in production and labor force equals increased production cost.