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P301 - Problem 7 The owner of a small mill-working plant that builds cabinets is developing his aggregate plan for the next year. The relevant cost data and forecast for the next 4 quarters is provided below. The company currently has 20 employees and works one hour shift each day with 2 paid 15 minute breaks. Assume each quarter has 63 working days, and that it currently has no units in stock. Use this information and the information from the table to answer the questions below. Costs Forecast Other Data Holding Cost Unit Quarter $72.50 Qtr 1 Labor Hours Unit 5.25 Hiring Cost $7.500.00 Qtr 2 3100 Beginning Inventory Layoff Cost $10,000.00 Qtr 3 3650 Subcontract Cost S180,00 Otr 4 4100 Avg. Labor Cost Hour $22.50 Overtime Labor Cost Hour 533.75 Part 1 2600 0 1) If the company used a chase demand startegy and rounded any fractional number of employees to the nearest whole number, how many employees would be used in each quarter? 2) the company used a level capacity strategy and rounded any fractional number of employees to the nearest whole number, how many employees would be used? Period 1 2 3 4 Forecast 2600 3100 3650 4100 Hours Reg. Workers Req Part 1 Assume the company wants to use a Level Capacity Strategy with 35 employees (Round the Production in each period to the nearest whole number). In any period where on-hand inventory and production do not meet demand the company would supplement with overtime production. Use the table below to answer questions 3 & 4. 3) What would the overtime production cost be for this plan? 4) What would the Total Cost be for this plan? Level Capacity Aggregate Plan Period 1 2 3 4 Forecast 2600 3100 3650 4100 Workers Used Hire (Fire) Production Production - Forecast Inventory B.1. E.I. Average Overtime Production Hiring Cost Firing Cost Reg. Output O.T. Subcontract Inventory Backorder Total Cost: Total Cost For Plan