Question
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 (B), 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 B
- Pure level strategy at the rate of 1200.
- Allow varying inventory,
- Allow Backorders.
- Overtime allowed up to a maximum of 150 units per quarter.
- Part-time allowed up to a maximum of 50 units per quarter.
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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