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A company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase
A company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase strategy would be better. They have the following information available regarding their production operation: Hiring Cost (per unit increase) $40 Firing (per unit decrease) $80 Inventory Cost (per unit) $40 Stockout (per unit) $150 Production (Labor) cost (per unit) $30 Subcontracting cost (per unit) $60 Previous quarter's production 1300 Previous quarter's ending inventory 0 Quarter forecasts are 4000, 3000, 4000 and 5000, respectively. Suppose that you want to use a chase plan. What is your production rate in quarter 3? (Do not round your intermediate calculations. Round your final answer to the nearest whole number.) 4000 None of these 5000 2000 3500
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