Excel Template below for each strategy: Level, Chase, & Mixed.

The Beerstore packages specialty beers into gift packs and sells them via the Internet. Its most popular items are the Northwest Grunge Sampler and the Deep South Hooch Sampler. The product structure trees are given in Figure 1.1 Northwest Grunge Deep South Hooch Sampler Sampler Walla Walla Mud Mt. Hood Dredge Tacoma Terror Box Box Meridian Mothball Tuscaloosa Tornado Augusta Augsbarge . 2 Label Label Label Label Label Label Figure 1.1 Two of each beer is included in each of the samplers (i.e., each sampler has six beers total). The Aggregate Production Plan The Beerstore splits the forecast they develop for their gift packs over the next 4 quarters. They estimate their demand for the year at 6000. The following table contains the fraction of demand by quarter. Apply the forecast to these percentages. Quarter Fraction of Demand 1/6 4/15 3 7/30 1/3 The cost of carrying inventory is calculated at $5.00 per unit per period. Jody has been told they cannot afford stockouts and there is no backordering. At the APP level no work can be subcontracted and overtime work by employees is not allowed. However, the company will allow extra inventory to carry over from quarter to quarter and year to year. The Beerstore has 5 workers on staff now and each worker can produce on average 100 samplers per quarter. The labor force is fairly liquid and workers can be readily hired or laid off. Hiring costs are $500 per worker and layoff costs are $700 per worker. The workforce at the end of the 4th quarter will be retained. Her boss suggested they just follow the demand, a chase strategy, through the quarters to minimize un-needed inventory. However, the company HR department always complains about hiring and firing costs so they have suggested a pure level strategy. Jody needs to develop an aggregate production plan (APP) for the data that minimizes costs but complies with all company policies. Help Jody out. 01 02 Q3 Q4 1000 1600 1400 2000 Prod./Wrkr 1 Hire Cost Fire Cost Level 0 Produced Wrks Ndd Fire Tu Wrks 0 Begin Wrks Needed 1000 1600 1400 2000 6000 0 0 Q1 02 03 04 Whole Wrks Nd Hire 0 0 0 0 0 0 inv. Cst Inv. Inv. Cst -1000 -2600 -4000 -6000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Cost 0 The Beerstore packages specialty beers into gift packs and sells them via the Internet. Its most popular items are the Northwest Grunge Sampler and the Deep South Hooch Sampler. The product structure trees are given in Figure 1.1 Northwest Grunge Deep South Hooch Sampler Sampler Walla Walla Mud Mt. Hood Dredge Tacoma Terror Box Box Meridian Mothball Tuscaloosa Tornado Augusta Augsbarge . 2 Label Label Label Label Label Label Figure 1.1 Two of each beer is included in each of the samplers (i.e., each sampler has six beers total). The Aggregate Production Plan The Beerstore splits the forecast they develop for their gift packs over the next 4 quarters. They estimate their demand for the year at 6000. The following table contains the fraction of demand by quarter. Apply the forecast to these percentages. Quarter Fraction of Demand 1/6 4/15 3 7/30 1/3 The cost of carrying inventory is calculated at $5.00 per unit per period. Jody has been told they cannot afford stockouts and there is no backordering. At the APP level no work can be subcontracted and overtime work by employees is not allowed. However, the company will allow extra inventory to carry over from quarter to quarter and year to year. The Beerstore has 5 workers on staff now and each worker can produce on average 100 samplers per quarter. The labor force is fairly liquid and workers can be readily hired or laid off. Hiring costs are $500 per worker and layoff costs are $700 per worker. The workforce at the end of the 4th quarter will be retained. Her boss suggested they just follow the demand, a chase strategy, through the quarters to minimize un-needed inventory. However, the company HR department always complains about hiring and firing costs so they have suggested a pure level strategy. Jody needs to develop an aggregate production plan (APP) for the data that minimizes costs but complies with all company policies. Help Jody out. 01 02 Q3 Q4 1000 1600 1400 2000 Prod./Wrkr 1 Hire Cost Fire Cost Level 0 Produced Wrks Ndd Fire Tu Wrks 0 Begin Wrks Needed 1000 1600 1400 2000 6000 0 0 Q1 02 03 04 Whole Wrks Nd Hire 0 0 0 0 0 0 inv. Cst Inv. Inv. Cst -1000 -2600 -4000 -6000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Cost 0