Question: Company ABC plans to choose one production pattern using additional cost analysis. The following data is needed to carry out this analysis. Quarterly Demand 1
Company ABC plans to choose one production pattern using additional cost analysis. The following data is needed to carry out this analysis.
| Quarterly | Demand |
| 1 | 400 |
| 2 | 1,100 |
| 3 | 1,300 |
| 4 | 900 |
To meet this demand, three alternative production patterns are planned as follows: Constant pattern of 1,000 units per quarter Wavy pattern according to the wave of demand Moderate pattern, where in the first and second quarters it was 800 units per quarter third and fourth amounting to 1,200 units.
Requested: Determine which production pattern the company should choose if the holding costs are known Rp. 250,-/unit/quarter, subcontract fee Rp. 600,-/unit, overtime work costs Rp. 200,- /unit/quarter, and overtime work costs must be paid if production exceeds 1,500 units per quarter, Every additional 100 units of production will require a labor turnover cost of IDR. 15,000, while if it is less than 100 units it is IDR. 25,000, - the maximum capacity of existing machines is 2,000 units per quarter.
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