Question: Overtime cost was not given For D... could we go own and answer the rest of the other questions? QUESTION TWO California Beverage LTD has

Overtime cost was not given For D... could we go own

Overtime cost was not given For D... could we go own and answer the rest of the other questions?

QUESTION TWO California Beverage LTD has a new drink for which it has high hopes. Peter Zulu, the production planner, has assembled the following cost data and demand forecast: noemde Quarter 1 TH 2 Forecast 1800 1100 1600 900 7 ore oroso 4 Costs / Other Data Previous quarter's output 1300 units Stock out cost K150 Inventory Holding cost K40 Terminating employees K80 Hiring employees K40 Subcontracting cost K60 Unit cost K30 Your job is to develop an aggregate plan. The three initial options you want to evaluate are; 1. Plan A: a level strategy, [5 Marks] II. Plan B: a chase strategy, [5 Marks] III. Plan C: a level strategy that produces 1200 units per quarter and meets the forecasted demand with inventory and subcontracting, [5 Marks) IV.) Plan D: a level strategy that produces 1200 units per quarter and meets the forecasted demand with inventory and overtime (5 Marks) V. Which strategy would you choose and why? [2 marks]

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