CHASE STRATEGY - INV/OT/SUB SOLVE THE FOLLOWING CHASE STRATEGY AGGREGATE PLAN, WITH DISCREPANCY FILLED BY INVENTORY, THEN OVERTIME (OT) THEN SUBCONTRACTING. 8 BEGINNING INV 20,000 UNITS BEGINNING WORKERS WORKERS AVGE, MONTHLY OUTPUT PER WORKER 4,000 UNITS/WORKER PER INV. HOLDING COSTS $0.45 CASE/MONTH REG. PROD. COST $1.15 PER UNIT OT LIMIT 5,000 UNITS/MO INV LIMIT 3000 CASES/PERIOD SUBCONTRACTING COST $1.80 PER CASE FIRING/LAYOFF COST $1,500 PER WORKER OT COST $1.60 PER CASE HIRING COST $1,000 PER WORKER FEB 32,000 MAR 32,000 APR 24,000 MAY 60,000 JUN 44,000 TOTAL 240,000 MONTH JAN FORECAST OUTPUT 48,000 REG diff INV OT SUBCON INVENTORY BEG END COSTS: REG. OUTPUT OT SUBCON INV STARTING # EMPL NEEDED EMPLOYEES HIRE FIRING CHASE STRATEGY - INV/OT/SUB SOLVE THE FOLLOWING CHASE STRATEGY AGGREGATE PLAN, WITH DISCREPANCY FILLED BY INVENTORY, THEN OVERTIME (OT) THEN SUBCONTRACTING. 8 BEGINNING INV 20,000 UNITS BEGINNING WORKERS WORKERS AVGE, MONTHLY OUTPUT PER WORKER 4,000 UNITS/WORKER PER INV. HOLDING COSTS $0.45 CASE/MONTH REG. PROD. COST $1.15 PER UNIT OT LIMIT 5,000 UNITS/MO INV LIMIT 3000 CASES/PERIOD SUBCONTRACTING COST $1.80 PER CASE FIRING/LAYOFF COST $1,500 PER WORKER OT COST $1.60 PER CASE HIRING COST $1,000 PER WORKER FEB 32,000 MAR 32,000 APR 24,000 MAY 60,000 JUN 44,000 TOTAL 240,000 MONTH JAN FORECAST OUTPUT 48,000 REG diff INV OT SUBCON INVENTORY BEG END COSTS: REG. OUTPUT OT SUBCON INV STARTING # EMPL NEEDED EMPLOYEES HIRE FIRING