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
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