Question: Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the
Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly
demand is given below in the chart. The company will have washers in inventory at the beginning of the month and desires to
maintain at least that number at the end of each month. Assume hiring and layofffiring if necessary, occur at the beginning of the
month. Below is other critical data:
Production cost per unit $
Inventory carrying cost per month per unit $based on ending month inventory
Hiring cost per worker $
Firing cost per worker $
Beginning number of workers
ZoictureClick here for the Excel Data File
Each worker can produce units per month.
a Given the planning information, develop a level production plan and a chase production plan. Leave no cells blonk be certaln to
enter wherever required.
b Determine the cost of the two plans.
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