Question: Please Answer a, b, c and d. Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the

Please Answer a, b, c and d. Please Answer a, b, c and d. Trexoid Inc. makes a

Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last quarter of the year. Regular production costs are $120 per unit and inventory carrying cost is $5 per unit per quarter. Overtime production cost is $150 per unit. Assume that the 10 current Trexoid employees can produce a total of 50,000 units per quarter in regular production and can work enough overtime hours to produce the amount required if a chase plan is employed. On the other hand, hiring cost is $5,000 per employee and firing cost is $10,000 per employee. Trexoid currently has zero inventory on hand, and they would like to have zero inventories at the end of the year. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Forecasted demand is as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 30,000 units 20,000 units 70,000 units 120,000 units a. Given the above demand estimate, develop a production plan based on level production. (Leave no cells blank - be certain to enter "0" wherever required.) Level Production Plan b. Determine the cost of the level production plan. c. Given the planning information, develop a production plan based on chase production. (Leave no cells blank - be certain to enter "0" wherever required. Quarter Demand Regular Production Ending Inventory Number of Workers Hire Fire Total cost 1 Ending Inventory Number of Workers 2 3 30,000 20.000 70,000 120,000 240,000 Chase Production Plan - Overtime with Stable Workforce Demand Regular Quarter Overtime Production Production 1 30.000 2 20,000 3 70.000 4 120.000 Total 240,000 4 Total d. Determine the cost of the chase production plan. Number of Workers Hire Total cost if overtime production used Total cost if workforce size adjusted Fire Chase Production Plan - Changing Workforce Levels Quarter Demand Regular Ending Production Inventory 1 30,000 2 20,000 3 70,000 4 120,000 Total 240,000

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