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What are the advantages and disadvantages of level production schedules in firms with cyclical sales?
Wiki User
∙ 14y ago
Level production in a cyclical industry has the advantage of allowing for the maintenance of a stable work force and reducing inefficiencies caused by shutting down production during slow periods and accelerating work during crash production periods. A major drawback is that a large stock of inventory may be accumulated during the slow sales periods. This inventory may be expensive to finance, with an associated danger of obsolescence.
Wiki User
∙ 14y ago
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6 What are the advantage and disadvantage of level production schedules in firms with cyclical sales?
The advantage of the level production schedule in firms with cyclical sales is resources and labor are spread evenly. The disadvantage of the level production schedule is that it is a costly exercise.
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