Problem 2 (40 points) SAR, Inc. needs to develop an aggregate plan for its product line....

 

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Problem 2 (40 points) SAR, Inc. needs to develop an aggregate plan for its product line. Relevant data are Production time: Average labor cost: Workweek: Hiring cost: Layoff cost: Beginning inventory: Shortage cost: Inventory cost: Outsourced cost: Jan. 2500 22 0.5 units per hour $9/hour 5 days, 8 hours per day $100/worker $130/worker 100 units $12 per unit per month $5 per unit per month $13/unit SAR Inc. currently employs 25 workers. The forecast for the next 6 months is: Feb. 2000 Mar. Apr. May 2800 2400 June 2300 2500 21 23 22 23 21 Days per month Perform aggregate planning for level strategy and stable strategy outsourcing. Which one is more efficient? Problem 2 (40 points) SAR, Inc. needs to develop an aggregate plan for its product line. Relevant data are Production time: Average labor cost: Workweek: Hiring cost: Layoff cost: Beginning inventory: Shortage cost: Inventory cost: Outsourced cost: Jan. 2500 22 0.5 units per hour $9/hour 5 days, 8 hours per day $100/worker $130/worker 100 units $12 per unit per month $5 per unit per month $13/unit SAR Inc. currently employs 25 workers. The forecast for the next 6 months is: Feb. 2000 Mar. Apr. May 2800 2400 June 2300 2500 21 23 22 23 21 Days per month Perform aggregate planning for level strategy and stable strategy outsourcing. Which one is more efficient?

Answer rating: 100% (QA)

Solution APPLYING LEVEL STRATEGY DEMAND OPENING INVENTORY PRODUCTION TO... View the full answer