Assignment 5-Aggregate Planning Question 1 Prepare TWO (2) strategies in aggregate planning and compute their total costs: (a) Use a mixed strategy: Jan - March use level production strategy with Sub-contracting and OT as needed. While April-June use chase demand strategy. (2 marks] Feb March Apr May June 4,000 8.000 6.000 2,000 8,000 2,000 Jan Current workforce Production per worker Inventory holding cost Regular production cost Overtime production cost Sub-contracting (SC) cost Hining cost Firing cost Beginning inventory 10 workers 200 units per unit $0.30 per unit per month $20.00 per un $30.00 per unit $40.00 per un $1,200 per worker $2.400 per worker 3000 units Mth Regular Production Ending Demand Overtime Sic H Workers F Inventory Jan 4,000 Feb 8,000 March 6,000 Apr 2,000 May 8,000 June 2,000 Total 30,000 Total Cost: (b) Use a level production strategy (2 marks) Jan 4.000 Feb 8,000 March 6,000 Apr 2.000 May 8,000 June 2.000 Current workforce Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting (St) cost Hining cost Firing cost Beginning inventory 10 workers 200 units per month $0.30 per case per month $20.00 per hour $30.00 per hour $40.00 per hour $1,200 per worker $2.400 per worker 3000 units Mth Demand Regular Production Overtime Sic Ending Inventory Workers H F Jan 4,000 Feb 8,000 March 6.000 Apr 2.000 May 8.000 June 2,000 Total 30,000 Total Cost: (c) Between the two strategies which strategy is better and why? (1 mark) Question 2 (a) Complete the following transportation tableau using the minimum cel cost method. (2 marks] Period of Use Unused Capacity Periode Production 1 4 Capacity D Beg. Inventory 400 BD 54 500 Regular 100 Overtime SO 150 6 Subcontract 400 Regular 10 50 Overtime 32 100 SO Subcontract 500 Regular 100 Overtime 20 42 150 Subcontract 75 60 400 Regular 50 Overtime 105 Subcontract 20 200 750 700 750 Demand 700 sadat LO b) Based on the aggregate plan in (a), determine the quantity of ending inventory for each period. (2 marks) Production Plan Period Demand Regular Production Overtime Subcontract Ending Inventory 2 3 4 TOTAL (c) Determine the total cost for this aggregate plan. (1 mark)