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Quarter Demand Previous quarter's output 2 5 0 0 units 1 2 3 0 0 Beginning inventory 2 0 0 units 2 2 4 0

Quarter Demand Previous quarter's output 2500 units
12300 Beginning inventory 200 units
22400 Stock-out costs $50 per unit
32600 Inventory holding cost $10 per unit at end of quarter
42100 Hiring workers $4 per unit
Laying off workers $8 per unit
Unit cost $30 per unit
Overtime $10 extra per unit
Subcontracting $60 per unit
Determine the cost for the following aggregate planning strategies:
a. Plan A - Vary the workforce using a chase strategy by hiring and layoffs to match regular time production to monthly demand. What is the total cost of this strategy? $[Blank1]
b. Did you lose any sales? If so, how many? [Blank2]
Total Cost $285,700
Sales Lost
c. Plan B - utilize a mixed strategy @ 2,200 for the planning period, with the option of using overtime (with a cap of 100) and inventory levels if needed. What is the total cost of this plan? $[Blank3]
d. Did you lose any sales? If so, how many? [Blank4]

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