Question: The Smith s Workshop produces hand - made clocks. It produces two types of clocks: Type A and Type B . The total demand of

The Smiths Workshop produces hand-made clocks. It produces two types of clocks: Type A and Type B. The total demand of Type A and Type B clock for next 6 months is given in the following table. The company current has 10 workers and each worker produces 2 clocks per month. The operations manager is preparing an aggregate production plan for next 6 months. The opening inventory is 20 clocks. Cost Data Regular-time labour cost $2 per clock Holding cost $1 per clock per month Overtime labour cost $3 per clock Hiring cost $100 per worker Subcontracting cost $6 per clock Firing cost $50 per worker Backorder cost $3 per clock Production: Max. overtime output 5 clocks per month 1) Develop a level aggregate planning using 50 clocks as a constant production rate. What is the total cost of this plan? 2) Develop a chase aggregate planning using on-hand inventory as early as possible. What is the total cost of this plan? (No overtime and subcontracting used) Week 1 2 3 4 5 6 Demand 30 50 50 60 50 20

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