1. What is the monthly production cost (price to make the number of units produced each month) following the level production strategy?

2. What are the total costs incurred for the year following the level production strategy?

3. How many units are produced for the year using the chase production strategy?

4. What is the annual total cost of firing employees in this example following the chase production strategy?

5. What are the total costs incurred for the year following the chase production strategy?

6. How many workers are required in September following the chase production strategy? Your answer should be a numerical whole number.

7. Based solely on total cost calculations, should the firm follow a chase or level production strategy in this example?

The following information will be used for the next 9 problems (17-25). I strongly suggest using Excel to setup the aggregate plan associated with these questions. A key hospital supplier, IVs Plus (IVP) located in Salina, KS sells IV tubing and stands to hospitals and clinics. Sales have picked up ever since they introduced their newest "Squeaky Clean" IV stand, which eliminates all oils and germs left behind by users. The demand over the next 12 months is shown in the table below. Use the demand forecasts and determine the lowest cost production plan. Month Demand Forecast Month Demand Forecast January 138,000 July 129,000 February 139,715 August 194,254 March 166,400 September 200,312 April 182,415 October 172,659 May 182,037 November 163,019 June 163,337 December 226,917 Regular production cost $28 per unit Regular production cost $28 per unit Holding cost $4 per unit per month based on ending inventory Backorder cost $8.00 per unit per month based on ending inventory Beginning Inventory 75,000 units Beginning workforce 6 employees Regular production rate 18,000 units per employee per month Hiring cost $9,000 per worker Firing cost $10,500 per worker Produce at a level rate using regular time production only. Backlogs are allowed in any month except December. Ending inventory is allowed in any month. Ending inventory for December should be as low as possible. The following information will be used for the next 9 problems (17-25). I strongly suggest using Excel to setup the aggregate plan associated with these questions. A key hospital supplier, IVs Plus (IVP) located in Salina, KS sells IV tubing and stands to hospitals and clinics. Sales have picked up ever since they introduced their newest "Squeaky Clean" IV stand, which eliminates all oils and germs left behind by users. The demand over the next 12 months is shown in the table below. Use the demand forecasts and determine the lowest cost production plan. Month Demand Forecast Month Demand Forecast January 138,000 July 129,000 February 139,715 August 194,254 March 166,400 September 200,312 April 182,415 October 172,659 May 182,037 November 163,019 June 163,337 December 226,917 Regular production cost $28 per unit Regular production cost $28 per unit Holding cost $4 per unit per month based on ending inventory Backorder cost $8.00 per unit per month based on ending inventory Beginning Inventory 75,000 units Beginning workforce 6 employees Regular production rate 18,000 units per employee per month Hiring cost $9,000 per worker Firing cost $10,500 per worker Produce at a level rate using regular time production only. Backlogs are allowed in any month except December. Ending inventory is allowed in any month. Ending inventory for December should be as low as possible