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Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the

Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the chart. The company will have 610 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 =$366
Inventory carrying cost per month per unit = $61(based on ending month inventory)
Hiring cost per worker =$1,220
Firing cost per worker =$2,440
Beginning number of workers =12
? Click here for the Excel Data File
Each worker can produce 122 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 "O" wherever required.)
\table[[Level Plan,],[Month,Demand,\table[[Regular],[Production]],\table[[Ending],[Inventory]],\table[[Workers],[Required]],Hire,Fire],[1,5,856,,,,,],[2,8,784,,,,,],[3,4,392,,,,,],[4,10,248,,,,,],[Total,29,280,,,,,]]
B. Determine the cost of two plans.
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