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Question two (25 marks) The Athletics Anonymous Company makes athletic clothing and they are preparing quarterly aggregate production plans for the coming year for their
Question two (25 marks) The Athletics Anonymous Company makes athletic clothing and they are preparing quarterly aggregate production plans for the coming year for their line of men's wear. They have the following information available to develop a level capacity and a matching capacity plan: Number of working days per quarter = 65 days Number of hours per shift per man = 8 hours Labour standard to produce one unit = 5 hours Demand for four quarters respectively is 12 000, 12 500, 12 200, 13 000 units Cost of hiring a worker = $5 000.00 Cost of laying off a worker = $2 500.00 Inventory carrying cost per unit = $400.00 Recommend to the company the capacity that will yield better profits. (Show all necessary calculations)
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