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
DesictureClick 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 blank be certain to enter O wherever required.
tabletableMonthDemand,tableRegularProductiontableEndingInventorytableWorkersRequiredHire,FireTntal
tableChase Plan Variable WorkforceMonthDemand,tableRegularProductiontableEndingInventorytableWorkersRequiredHire,FireTotal
b Determine the cost of the two plans.
tableTotal cost for level plan,Total cost for chase plan,
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