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S& Associates is a music player manufacturer in need of an aggregate plan for July to December. The company has gathered the following data. Month
S& Associates is a music player manufacturer in need of an aggregate plan for July to December. The company has gathered the following data. Month July August Sept Oct Nov Dec Demand 400 500 600 600 700 300 Beginning inventory = 0 units; Inventory holding costs = $10.00/unit/month; Hiring costs = $40/ worker; Layoff costs = $ 80/worker; Current workforce level = 8 workers; Workdays/month = 20 days; Hours per day = 8 hours; Each employee can produce 40 players per month; Regular time wages = $15 per hour; 1. For a level strategy in this manufacturing example: a. What is the production rate? b. Calculate the workers needed c. Calculate the anticipation inventory Month July August Sept Oct Nov Dec Beg Inv. Production Demand 400 500 600 600 700 800 End Inv (Anticipatio n Inv.)
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