Question
Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The companys expected monthly demand is given below in the
Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The companys expected monthly demand is given below in the chart. The company will have 670 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Below is other critical data: Production cost per unit =$402 Inventory carrying cost per month per unit = $67 (based on ending month inventory) Hiring cost per worker = $1,340 Firing cost per worker = $2,680 Beginning number of workers = 13 Each worker can produce 134 units per month. a. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.)
b. Determine the cost of the two plansStep by Step Solution
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