Question: Question 4 Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units

 Question 4 Eagle Fabrication has the following aggregate demand requirements and

Question 4 Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1300 Beginning inventory 200 units 1400 Stock-out cost $50 per unit $10 per unit at end of 1500 Inventory holding cost quarter 1300 Hiring workers $4 per unit Laying off workers $8 per unit Unit cost $30 per unit Overtime $10 extra per unit ($40) What is the cost of the following plans: a. Plan A-chase the current period's demand by using hiring and layoffs to produce at a level that exactly matches demand. Include any costs due to the change in the production level from the previous output level. Cost - $ 167,400 b. Plan B-produce at a constant rate of 1200 and obtain the remainder from overtime. Include any costs due to the change in the production level from the previous output level. Cost = [ Select ] c. What plan would you choose? [Select ]

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