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A fashion company currently produces three products lines: purses cost $30 per unit and require 1 hour of labor, tank tops cost $20 per unit
A fashion company currently produces three products lines: purses cost $30 per unit and require 1 hour of labor, tank tops cost $20 per unit and require 3 hours of labor and hoodies cost $50 unit and requires 2 hours of labor. Assume the holding cost is 20% of the unit cost per year. Furthermore, the company estimates that 50% of the total sales will be from purses, 20% from the tank tops and remaining 30% from hoodies. (a) If the company wants to do aggregate planning, what will be a good aggregate unit? (b) If the ordering cost is high compared to the holding cost, what do you think a better strategy is, a chase strategy or a level strategy? Justify your answer (c) The demand for the three items over the past 3 months is as follows. Assuming no seasonality, what would be a good forecasting method of next month's demand for every product? Justify your answer. A fashion company currently produces three products lines: purses cost $30 per unit and require 1 hour of labor, tank tops cost $20 per unit and require 3 hours of labor and hoodies cost $50 unit and requires 2 hours of labor. Assume the holding cost is 20% of the unit cost per year. Furthermore, the company estimates that 50% of the total sales will be from purses, 20% from the tank tops and remaining 30% from hoodies. (a) If the company wants to do aggregate planning, what will be a good aggregate unit? (b) If the ordering cost is high compared to the holding cost, what do you think a better strategy is, a chase strategy or a level strategy? Justify your answer (c) The demand for the three items over the past 3 months is as follows. Assuming no seasonality, what would be a good forecasting method of next month's demand for every product? Justify your
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