Question: URGENT PLEASE HELP!!!!! Lego is preparing its aggregate plan for the first six months of 2023. The tables below contain the monthly demand forecast, working
URGENT PLEASE HELP!!!!!
Lego is preparing its aggregate plan for the first six months of 2023. The tables below contain the monthly demand forecast, working days per month, and cost information.
| Month | Expected Demand | Production Days |
| January | 150 | 15 |
| February | 250 | 10 |
| March | 200 | 20 |
| April | 250 | 25 |
| May | 350 | 10 |
| June | 400 | 20 |
| Inventory carrying cost | 10 | per unit per month | |
| Subcontracting cost per unit | 30 | per unit | |
| Regular working hours per day | 8 | hours | |
| Labor-hours to produce a unit | 4 | hours/unit | |
| Average pay rate | 20 | per hour | |
| Overtime pay rate | 25 | per hour | |
| Cost of increasing daily production rate (hiring and training) | 200 | per unit | |
| Cost of decreasing daily production rate (layoffs) | 400 | per unit | |
Lego is considering the following three strategies:
Plan 1: A constant workforce, daily production rate = average requirements
Plan 2: Main a constant workforce at a necessary level to meet the lowest demand month, and to meet all demand above this level by subcontracting.
Plan 3: Hire and lay off workers as needed to produce exact requirements.
Please answer the following questions:
(hint: all numbers are integer, no decimal places are needed)
The average requirements (average daily demand) is _______ units/day.
For Plan 1: (hint: the ending inventory in May should be 80)
The monthly inventory change in January is _________ units.
The ending inventory in April is _________units.
The ending inventory in June is _________ units.
The total inventory carrying cost is $_________.
The total cost is $__________.
For Plan 2: (hint: the total labor cost should be $80000).
Lego needs to hire ________ workers to maintain the workforce.
The production rate is ___________ units/day.
The total in-house production is _______units.
The total subcontracting cost is $________.
The total cost is $________.
For plan 3: (hint: the hiring cost and layoff cost in April is $0).
The total hiring cost is $________.
The total layoff cost is $________.
The total cost is $________.
Plan ________ is the best plan (Fill in the blank with 1, 2, or 3).
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