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Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Regular capacity production is equal to 1200 units at

Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Regular capacity production is equal to 1200 units at the beginning of Quarter 1 and must be at the same level at the end of Quarter 4.

Quarter

Demand

Beginning inventory

0 units

1

1300

Backorder costs

$55 per unit

2

1400

Inventory holding cost

$4 per unit at end of quarter

3

1500

Hiring workers

$8 per unit

4

1300

Laying off workers

$16 per unit

Regular Unit cost

$30 per unit

Overtime

$40 per unit

Part time

$50 per unit

Perform an aggregate planning calculation for the following aggregate plan (A), and upload the file of your answer in the appropriate area (Use a replicate of the Table presented below, fill it out, scan it, then upload it).

  • Plan A
    • Pure level strategy at the rate of the average quarterly demand,
    • Allow varying inventory,
    • Allow Backorders.
    • Overtime and part-time not allowed.

Demand

Total

Quarter

0

1

2

3

4

Production

Regular

Overtime

Part time

X

Inventory

Beginning

Ending

Average

Backorder

Cost

Regular

Overtime

Part time

Inventory

Backorder

Hiring and Firing

Plan Total Cost

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