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Question 2 The Operations Manager at Wilco Manufacturing Limited has asked you to engage in aggregate planning for the upcoming eight quarters. Demand data
Question 2 The Operations Manager at Wilco Manufacturing Limited has asked you to engage in aggregate planning for the upcoming eight quarters. Demand data for the upcoming eight quarters, along with other relevant data are presented below. Demand data for the upcoming eight quarters are provided below in Quarter Demand 1 2 3 4 5 6 7 00 8 1300 1000 1300 1900 2000 1100 1900 1200 previous quarters output beginning inventory stockout cost inventory holding cost hiring workers laying off workers subcontracting cost unit cost a. Plan A uses a chase strategy. Determine the cost of Plan A. SHOW YOUR WORKING. (8 marks) b. Plan B uses a pure level strategy. Determine the cost of Plan B. SHOW YOUR WORKING. (6 marks) 180 units O units $100 per unit $10 per unit at the end of quarter $20 per unit $40 per unit $200 per unit $100 per unit c. Develop Plan C using sub-contracting for production over 1200 units. Determine the cost of Plan C. SHOW YOUR WORKING. (8 marks) d. Discuss the inventory management issues that Wilco will face with each of the three plans. (5 marks) e Recommend one of the plans to WilCo, providing a rationale. (2 marks)
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