Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop...
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Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as follows: Q1 1,400, Q2 1,200, Q3 1,500. Q4 1,300 Costs: Previous Quarters Output 1,500 units Beginning Inventory 100 units Stock-out $50 per unit Inventory Holding Costs $10 per unit Hiring Workers $40 per unit Layoff Workers $80 per unit Unit Cost $30 per unit Overtime Cost Subcontracting Your job is to develop an aggregate plan for the next four quarters. $15 extra per unit ($45) $60 per unit a. Plan A - Hire or fire to produce exactly the prior quarter's demand. What is the cost of this plan? $ [Select] How much was spent on hiring? [Select] b. Plan B - Adopt a level strategy at a production rate of 1,150 units per quarter where one holds the employment steady. What is the cost of this plan? $ [Select] What were the total lost sales, including the cost? [Select] c. Plan C - Utilize a mixed strategy, first produce at a level production rate of 900 per quarter, then utilizing overtime with a cap of 200 units, then subcontracting. What is the cost of this plan? $ [Select] d. Which is the more economical plan for Deb Bishop Health and Beauty Products? [Select] Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as follows: Q1 1,400, Q2 1,200, Q3 1,500. Q4 1,300 Costs: Previous Quarters Output 1,500 units Beginning Inventory 100 units Stock-out $50 per unit Inventory Holding Costs $10 per unit Hiring Workers $40 per unit Layoff Workers $80 per unit Unit Cost $30 per unit Overtime Cost Subcontracting Your job is to develop an aggregate plan for the next four quarters. $15 extra per unit ($45) $60 per unit a. Plan A - Hire or fire to produce exactly the prior quarter's demand. What is the cost of this plan? $ [Select] How much was spent on hiring? [Select] b. Plan B - Adopt a level strategy at a production rate of 1,150 units per quarter where one holds the employment steady. What is the cost of this plan? $ [Select] What were the total lost sales, including the cost? [Select] c. Plan C - Utilize a mixed strategy, first produce at a level production rate of 900 per quarter, then utilizing overtime with a cap of 200 units, then subcontracting. What is the cost of this plan? $ [Select] d. Which is the more economical plan for Deb Bishop Health and Beauty Products? [Select]
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