question 14

question 15

An aggregate plan is to be developed based on the following information: Use Chase Demand strategy Current number of employees = 100 Production per employee = 100 units per quarter Hiring cost $100 each time an employee is hired Firing cost = $500 each time an employee is fired Inventory cost = $2 per unit Production cost per unit can be ignored Quarter Demand Forecast 1 8000 2 5000 3 12000 4 15000 Quarterly Production Workers Needed Workers Hired Workers Fired Hiring Cost Firing Cost Beginning Inventory Ending Inventory Average Inventory Inventory Holding Cost The total cost of this strategy is: $0 $125.000 $28,000 $35.000 An aggregate plan is to be developed based on the following information: Use Chase Demand strategy Current number of employees - 100 Production per employee = 100 units per quarter Hiring cost - $100 each time an employee is hired Firing cost = $500 each time an employee is fired Inventory cost - $2 per unit Production cost per unit can be ignored Quarter Demand Forecast 1 8000 2 5000 3 12000 15000 Quarterly Production Workers Needed Workers Hired Workers Fired Hiring Cost Firing Cost Beginning Inventory Ending Inventory Average Inventory Inventory Holding Cost The primary costs associated with the Chase Demand strategy are: backorder costs Inventory costs overtime and subcontracting costs hiring and furing costs