Please do provide answer for question 2 only, thanks

Please do provide answer for question 2 only, thanks

Please do provide answer for question 2 only, thanks

Assignment 5 - Aggregate Planning Question 1 Prepare TWO (2) strategies in aggregate planning and compute their total costs: (a) Use a mixed strategy: Jan - March use level production strategy with Sub-contracting and OT as needed. While April - June use chase demand strategy (2 marks) Jan Feb Apr May 4,000 8,000 6,000 2.000 8,000 March June 2,000 Current work force Production per worker Inventory holding cost Regular production cost Overtime production cost Sub-contracting (Sc) cos! Hiring cost Firing cost Beginning inventory Demand Regular Production 4,000 10 workers 200 units per unit $0.30 per unit per month $20.00 per unit $30.00 per unit $40.00 per unit $1.200 per worker $2,400 per worker 3000 units Mth Ending Overtime S/c Inventory Workers HF Jan Feb 8,000 March 6,000 Apr 2,000 May 8,000 June 2,000 Total 30,000 Total Cost: 1 (b) Use a level production strategy (2 marks) Jan 4,000 Feb 8.000 March 6,000 Apr 2.000 May 8,000 June 2.000 Current work force Production per worker Inventory holding cost Regular wage rate Overtime wage rate Sub-contracting (S/c) cost Hiring cost Firing cost Beginning inventory 10 workers 200 units per month $0.30 per case per month $20.00 per hour $30.00 per hour $40.00 per hour $1.200 per worker $2,400 per worker 3000 units Mth Demand Regular Production Overtime S/c Ending Inventory Workers HF Jan 4,000 8,000 Feb March 6,000 Apr 2,000 May 8,000 June 2,000 Total 30,000 Total Cost: (c) Between the two strategies which strategy is better and why? (1 mark) 2 Question 2 (a) Complete the following transportation tableau using the minimum cell cost method. (2 marks) Period of Use Unused Capacity Period of Production Capacity Beg. Inventory 1 2 3 4 . 2 4 6 400 60 62 64 66 500 Regular B0 82 84 86 100 1 Overtime 90 92 94 96 150 Subcontract 65 62 64 400 Regular R5 30 82 84 50 2 Overtime 95 90 92 94 100 Subcontract 70 65 60 62 500 Regular 90 RS 80 82 100 3 Overtime 100 95 90 92 150 Subcontract 75 70 65 60 400 Regular 95 90 85 BO 50 Overtime 105 100 95 200 90 Subcontract Derrand 750 700 750 700 (b) Based on the aggregate plan in (a), determine the quantity of ending inventory for each period (2 marks) Production Plan Period Demand Regular Production Overtime Subcontract Ending Inventory 1 2 3 4 TOTAL (c) Determine the total cost for this aggregate plan. (1 mark)