Question: a) If the firm uses a level output strategy using inventory and backorders, what is the production rate per period? b)If the firm uses a

a) If the firm uses a level output strategy using inventory and backorders, what is the production rate per period?
b)If the firm uses a chase demand strategy using overtime only, how many units will the firm produce in overtime in Period 4?
c)If the firm uses a hybrid strategy with inventory and backorders and a reduced permanent workforce of 35 employees, how many backordered units will there be in Period 1?
D)If the firm uses a level output strategy, What is the labor cost of this aggregate plan?
Consider the following Cost, Capacity and Demand data Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Beginning workforce: 40 Backorder cost per unit: $20 employees Inventory holding cost per unit: Beginning inventory: 0 units $10 Labor standard per unit: 2 hours Demand data Regular time available/period: 160 Period 1: 3920 units hours/employee Period 2: 2480 units Overtime available/period: 30 Period 3: 2200 units hours/employee Period 4: 3280 unitsStep by Step Solution
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