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 500 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assure hiring and layoftfiring, if necessary. occur at the beginning of the month. Below is other critical data Production cost per un $300 Inwervory carrying com per month per unit $50 (based on ending month inventory Hiring cost per workers $1,000 Fwig cost per worker = $2,000 Beginning number of workers 10 Each worker can produce 100 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 "0" wherever required Level Plan Month Demand Regular Production Ending Inventory Workers Required Hire Fire 1 4,000 2. 3 4 6,000 3,000 7,000 20.000 Total Ending Inventory Workers Required Hire Chase Plan-Variable Workforce Regular Demand Month Production 1 4.000 2 6,000 3 3.000 7.000 Ending Inventory Workers Required Hire Fire Chase Plan - Variable Workforce Month Demand Regular Production 1 4,000 2 6,000 3 3,000 4 7.000 Total 20,000 3 b. Determine the cost of the two plans, Total cost for level plan Total cost for chase plan
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