Question
2. Guven Teknoloji produces 'disk drives' and they are in need of aggregate plan for July through December. Based on the given information below
2. Guven Teknoloji produces 'disk drives' and they are in need of aggregate plan for July through December. Based on the given information below calculate the cost for the following three strategies: a. Use inventory to compensate demand fluctuations. (14 points) b. Vary overtime only and use constant workforce of eight (14 points) Keep lowest production requirement and subcontract rest (14 points) c. Quantity Unit July Holding cost Subcontracting Regular time labor Overtime labor 400 Current workforce Labor-hour/disk Workdays/month (same for all months) Beginning inventory August 8 disk/month 80 /disk 12 /hour 18 /hours above 8 hrs Sept. Quantity 8 4 20 0 Oct. Unit worker hours days Novem. 500 550 700 Demand Forecast of next 6 months (in units-disk) 800 Dec. 700
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