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A company produces a line of bicycles. The manager is interested in using a level production plan. Inventories and back orders (i.e. unfulfilled products will

A company produces a line of bicycles. The manager is interested in using a level production plan. Inventories and back orders (i.e. unfulfilled products will be supplied as soon as products become available) will be used to handle demand fluctuations. The manager has asked you to develop such a plan using the data shown below. Assume the beginning inventory carry no cost. Cost data Regular-time labor cost per hour $10 Overtime labor cost per hour $15 Subcontracting cost per unit (labor only) $84 Holding cost per unit per period $10 Back-order cost per unit per period $20 Hiring cost per employee $600 Firing cost per employee $450 Capacity data Beginning workforce 210 employees 216 employees Beginning inventory 400 units 400 units Labor standard per unit 6 hours 6 hours Regular time available per period 160 hours 160 hours Overtime available per period 32 hours 32 hours Subcontracting maximum per period 1000 units 1000 units Subcontracting minimum per period 500 units 500 units Demand data Period 1 6700 units Period 2 5200 units Period 3 7860 units Period 4 5100 units Period 5 6500 units Period 6 3600 units Given this information, i. the aggregate production rate per period is Blank 1. Fill in the blank, read surrounding text. ? ii. the appropriate workforce needed per period to implement the level production plan is Blank 2. Fill in the blank, read surrounding text. ? iii. the total back orders over the six period will be Blank 3. Fill in the blank, read surrounding text. iv. the total cost of the production plan is $ Blank 4. Fill in the blank, read surrounding text. v. the total cost incurred from back orders is $ Blank 5. Fill in the blank, read surrounding text. vi. the total cost incurred due to inventory is $ Blank 6. Fill in the blank, read surrounding text.

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