Question
4. The following information relates to a company's aggregate production planning activities: Quarter 1 2 3 4 Demand Forecast 37,500 45,000 25,000 62,500 Beginning Workforce
4. The following information relates to a company's aggregate production planning activities:
Quarter
1
2
3
4
Demand Forecast
37,500
45,000
25,000
62,500
Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter a.
If a chase demand strategy is used then the number of workers hired at the start of quarter 4 is? (2.5).
b. If a chase demand strategy is used the number of workers fired at the start of quarter 3 is? (2.5).
c. If a chase demand strategy is used the total hiring and firing costs for the production plan is? (2.5).
d. If a level production strategy is used the number of units to produce each quarter is? (2.5).
e. If a level production strategy is used the number of workers required each quarter is? (2.5).
f. If a level production strategy is used the number of units in inventory at the end of quarter 3 is? (2.5).
g. If a level production strategy is used the total cost of the production plan (hiring cost, firing cost, and inventory cost) is?
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