Question: CHASE STRATEGY - INV/OT/SUB SOLVE THE FOLLOWING CHASE STRATEGY AGGREGATE PLAN, WITH DISCREPANCY FILLED BY INVENTORY, THEN OVERTIME (OT) THEN SUBCONTRACTING. BEGINNING INV 20,000 UNITS

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

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