Question: H&C Corporation is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the

H&C Corporation is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following chart. H&C has 100 units in inventory at the beginning of the month and wants to maintain at least 100 units at the end of each month.

Production cost per unit = $125

Inventory carrying cost per month per unit = $10 (based on ending month inventory)

Hiring cost per worker = $50

Firing cost per worker = $100

Beginning number of workers = 25

Each worker can produce 25 units per month.

Month Demand

Regular

production

Overtime

Ending

inventory

Workers

required

Hire

Fire

1 600
2 800
3 700
4 900
Total 3,000

The total cost of a chase plan is:

Group of answer choices

380300

380200

380400

380900

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!