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More Info More Info New Brunswick's Soda Pop, Inc., has a new fruit drink for which it has high hopes. Steve Allen, the production planner,
More Info More Info New Brunswick's Soda Pop, Inc., has a new fruit drink for which it has high hopes. Steve Allen, the production planner, has assembled the below cost data and demand forecast. Click the icon to view the demand forecast. Click the icon to view the cost data. Steve's job is to develop an aggregate plan. The three initial options he wants to evaluate are: - Plan A: a strategy that hires and fires personnel as necessary to meet the forecast; - Plan B: a level strategy; - Plan C: a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest cost plan? Try hiring and layoffs as necessary to meet the forecast. (Enter your responses as whole numbers.) The total cost, including normal time labour costs, for this hiring and layoffs plan is $. (Enter your response as a whole number.) The total cost, including normal time labour costs, for this level plan is $ (Enter your response as a whole number.) Construct the level plan that holds employment steady at 1,100 plus subcontracting. (Enter your responses as whole numbers.) The total cost, including normal time labour costs, for this level plan is $ (Enter your response as a whole number.) b) If you are Steve's boss, the VP for operations, which plan do you implement and why? A. Plan C because it is the lowest cost and provides steady employment for the employees B. Plan A because it is the highest cost and provides steady employment for the employees C. Plan A because it is the highest cost and provides unsteady employment for the employees D. Plan B because it is the lowest cost and provides steady employment for the employees E. Plan C because it is the lowest cost and provides unsteady employment for the employees F. Plan B because it is the highest cost and provides steady employment for the employees
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