Question: Problem 13-8 Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below

Problem 13-8 Appliances Inc. is preparing anProblem 13-8 Appliances Inc. is preparing an

Problem 13-8 Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the chart. The company will have 550 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Below is other critical data: Production cost per unit = $340 Inventory carrying cost per month per unit = $70 (based on ending month inventory) Hiring cost per worker = $800 Firing cost per worker = $1,600 Beginning number of workers = 18 Each worker can produce 100 units per month. a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.) Level Plan Month Demand Regular Production Ending Inventory Workers Required Hire Fire 1 1,800 2 3 3,600 3,000 4,800 13,200 4 Total 0 0 0 Chase Plan - Variable Workforce Month Demand Regular Production Ending Inventory Workers Required Hire Fire 1 1,800 3,600 2 3 3,000 4 4,800 13,200 Total 0 0 0 0 b. Determine the cost of the two plans. Total cost for level plan Total cost for chase plan

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