1-Problem 1 The owner of a small mill-working plant that builds cabinets is developing his aggregate plan...

1-Problem 1

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The owner of a small mill-working plant that builds cabinets is developing his aggregate plan for the next year. The relevant cost data and forecast for the next 4 quarters is provided below. The company currently has 20 employees and works one 8 hour shift each day with 2 paid 15 minute breaks. Assume each quarter has 61 working days, and that it currently has no units in stock. Use this information and the information from the table below to answer the questions below. Costs Holding Cost/Unit/Quarter Hiring Cost Layoff Cost Subcontract Cost Avg. Labor Cost/Hour Overtime Labor Cost/Hour Part I $65.75 $10,500.00 $14,000.00 $210.00 $23.50 $35.25 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Forecast 2600 3100 4100 3650 Other Data Labor Hours/Unit Beginning Inventory 5.5 0 1) If the company used a chase demand startegy and rounded any fractional number of employees to the nearest whole number, how many employees would be used in each quarter? The owner of a small mill-working plant that builds cabinets is developing his aggregate plan for the next year. The relevant cost data and forecast for the next 4 quarters is provided below. The company currently has 20 employees and works one 8 hour shift each day with 2 paid 15 minute breaks. Assume each quarter has 61 working days, and that it currently has no units in stock. Use this information and the information from the table below to answer the questions below. Costs Holding Cost/Unit/Quarter Hiring Cost Layoff Cost Subcontract Cost Avg. Labor Cost/Hour Overtime Labor Cost/Hour Part I $65.75 $10,500.00 $14,000.00 $210.00 $23.50 $35.25 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Forecast 2600 3100 4100 3650 Other Data Labor Hours/Unit Beginning Inventory 5.5 0 1) If the company used a chase demand startegy and rounded any fractional number of employees to the nearest whole number, how many employees would be used in each quarter?