The BackPack Company produces a line of backpacks. Use the following data to solve the problem: Problem Data Cost data Regular-time labor cost per hour $12.00 Overtime labor cost per hour $16.00 Subcontracting cost per unit (labor only) $78.00 Holding cost per unit per period $8.00 Back-order cost per unit per period $16.00 Hiring cost per employee $500.00 Firing cost per employee $350.00 Capacity data Beginning workforce 187 employees Beginning inventory 300 units Labor standard per unit 6 hours Regular time available per period 180 hours Overtime available per period 30 hours Subcontracting maximum per period 1,000 units Subcontracting minimum per period 500 units Demand data Period 1 5,400 Period 2 4,500 Period 3 7,600 Period 4 5,700 Period 5 6,800 Period 6 3,900 Tameka Nicholas is concerned about BackPack's corporate image and has decided against using hires and fires. Instead, she has asked you to consider a chase aggregate plan using the current workforce supplemented by either overtime or undertime to change capacity to match demand exactly.

She has asked for the following information from you: 

A. How many production hours would be required each period to produce the exact quantity needed? 

B. How many regular-time production hours are available each period?

C. How many overtime production hours would be needed each period? Explain any problems that may occur. 

D. Show what would happen if this plan were implemented. 

E. Calculate the costs associated with this plan.

Answer rating: 100% (QA)

A How many production hours would be required ... View the full answer