Question: ( 3 ) An aggregate plan for four upcoming quarters cases of a fruit drink is to be developed. Demand for each quarter, production quantity
An aggregate plan for four upcoming quarters cases of a fruit drink is to be developed. Demand for
each quarter, production quantity and ending inventory for the previous quarter, Quarter are
provided. The relevant costs are:
Beginning inventory is cases. Inventory costcasequarter is $
Regular time production capacity is cases and overtime production is limited to
cases.
Regular time production cost is $ case. Overtime production cost is $ case.
An unlimited number of cases can be subcontracted at a cost of $ case.
Cost of labor fluctuation due to changes in production level from quarter to quarter are
accounted for as: $ per unit of increase in production level and $ per unit of decrease in
production level.
a Develop an aggregate plan using a 'produce to demand' strategy. Provide answers to the
questions that follow after completing the aggregate plan in the table below.
i points What is the total of production level increases?
ii points What is the total of production level decreases?
iii. points
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