Based on the graphical method for aggregate planning, the comparison for the three options are as...

  

Transcribed Image Text:

Based on the graphical method for aggregate planning, the comparison for the three options are as follows: Comparison Table Level Strategy-P1 Level Strategy-P2 Chase Strategy - P3 Cost items Inventory Carrying $22,400.00 $46,370.00 $220,000.00 $6,800.00 $21,500.00 $216.650.00 $0.00 Reg Labour $216,650.00 $0.00 Overtime Labour Hiring and Training Layoff Subcontracting Total $0.00 $0.00 $0.00 $0.00 $12,000.00 $4,800.00 $0.00 $273,170.00 $56,000.00 $295,050.00 $0.00 $254,950.00 Level Strategy 1 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues and no subcontractors. The assumption for inventory is that beginning inventory is zero. Level strategy 2 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues, and subcontractors will be used to meet demand. The assumption for inventory is that the beginning inventory is zero. Chase Strategy is based on varying the workforce size by hiring and laying off the workforce to meet demand. The assumption for inventory is that the beginning inventory is zero. The comparison table is based on the following forecasts and cost information. Cost Information Information Layoff costs Hiring and Training Avg Pay Rate Overtime Pay Rate Subcontracting cost per unit Inventory carrying cost Labour hours to produce a unit Costs $600 per unit $400 per unit $15 per hour $20 per hour (above 9 hours per day) $25 per hour $10 per unit per month 1.5 hour per unit Forecast Month Forecasted Demand Production days per month Jun 1105 22 July Aug 1279 24 1480 24 1990 22 Sep Oct 2241 24 Nov 1985 24 a.) Identify 5 mistakes in the comparison table. For each mistake, explain why is wrong and what is the correct value? (2 marks for each correctly identified error and the correct answer - total 10 marks) b.) Create a new comparison table with all the correct values. Justify the final comparison table with proof. (10 marks) Based on the graphical method for aggregate planning, the comparison for the three options are as follows: Comparison Table Level Strategy-P1 Level Strategy-P2 Chase Strategy - P3 Cost items Inventory Carrying $22,400.00 $46,370.00 $220,000.00 $6,800.00 $21,500.00 $216.650.00 $0.00 Reg Labour $216,650.00 $0.00 Overtime Labour Hiring and Training Layoff Subcontracting Total $0.00 $0.00 $0.00 $0.00 $12,000.00 $4,800.00 $0.00 $273,170.00 $56,000.00 $295,050.00 $0.00 $254,950.00 Level Strategy 1 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues and no subcontractors. The assumption for inventory is that beginning inventory is zero. Level strategy 2 is based on constant workforce with no overtime or idle time, no safety stock, no lead time issues, and subcontractors will be used to meet demand. The assumption for inventory is that the beginning inventory is zero. Chase Strategy is based on varying the workforce size by hiring and laying off the workforce to meet demand. The assumption for inventory is that the beginning inventory is zero. The comparison table is based on the following forecasts and cost information. Cost Information Information Layoff costs Hiring and Training Avg Pay Rate Overtime Pay Rate Subcontracting cost per unit Inventory carrying cost Labour hours to produce a unit Costs $600 per unit $400 per unit $15 per hour $20 per hour (above 9 hours per day) $25 per hour $10 per unit per month 1.5 hour per unit Forecast Month Forecasted Demand Production days per month Jun 1105 22 July Aug 1279 24 1480 24 1990 22 Sep Oct 2241 24 Nov 1985 24 a.) Identify 5 mistakes in the comparison table. For each mistake, explain why is wrong and what is the correct value? (2 marks for each correctly identified error and the correct answer - total 10 marks) b.) Create a new comparison table with all the correct values. Justify the final comparison table with proof. (10 marks)

Answer rating: 100% (QA)

a Level 1 strategy Days per month Hours worked Units produced inventory inventory carrying cost Reg labor cost Jun 22 198 132 132000 297000 July 24 21... View the full answer