Implications of closing a plant.

Benefits: 1)There is overtime required in Plant A, proper utilization of the workers 2) As there are no excessive units produces more than the demand , there will be low inventory holding cost 3) The operating cost is lowered

Implications of closing a plant.

Challenges: 1)Cost of termination & rehiring 2) Negative reputation of the company 3) Backorder &lost sales 4) Workforce arrangement 5) Adjusting the output rates

Implications of closing a plant.

Change in Work Attitudes High Job insecurity Intentions to leave Loss of key knowledge Organisational Impacts Profitability Quality Stock price Customer relations