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The Eiogard Corporation produces bookcases. The department current has 20 workers. and each worker produces 5 bookcases per month. The operations manager is considering an
The Eiogard Corporation produces bookcases. The department current has 20 workers. and each worker produces 5 bookcases per month. The operations manager is considering an aggregate production plan for the next six months. The manager knows that the opening inventory for this plan is 1U bookcases. The demand for each month is given in the following table. _ _ The information on cost and production is given as follows: Cost: Regular-time labour cost $6 per bookcase Overtime labour cost $9 per bookcase Subcontracting cost $12 per bookcase Holding cost $1 per bookcase per month Hin'ng cost $51} per worker Firing cost $41} per worker Production: Max. overtime output 3D bookcases per month 1} Use a level approach to develop an aggregate plan using the highest demand to be the constant output ratefmonth. Use the table below to assist your analysis and develop an aggregate plan. What is the total cost of this plan? 2} Use a chase approach to develop an aggregate plan. If the company would like to use the on-hand inventory as early as possible. what is the total cost of this plan? Use the table below to assist your analysis and develop an aggregate plan. 3} Keep the initial workforce level and use overtime and subcontract as needed. can vary production rate. no backorders and no hiringl'firing. Inventory at the end of month Er is all]. What is the total cost of this plan
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