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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
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 1 2 3 4 Demand 1300 1400 1500 1300 Beginning inventory 0 units Backorder costs $55 per unit Inventory holding cost $4 per unit at end of quarter Hiring workers $8 per unit Laying off workers Regular Unit cost Overtime Part time $16 per unit $30 per unit $40 per unit $50 per unit Perform an aggregate planning calculation for the following aggregate plan (Plan A). (Use a replicate of the Table presented below, fill it out, then respond to all questions related to Plan A). Plan A Pure level strategy at the rate of the average quarterly demand, Allow varying inventory, Allow Backorders. Overtime and part-time not allowed. Production X Inventory Backorder Cost Quarter Regular Overtime Part time Beginning Ending Average Regular Overtime 0 Demand 1 2 3 4 Total Cost Regular Overtime Part time Your Answer: Inventory Backorder Hiring and Firing Plan Total Cost What is the regular production quantity for each quarter under this aggregate plan (Plan A)?
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