Thomas Surfson, the manager of a Wilmington based surf boards manufacturing Company has developed monthly forecasts for a family of surf boards. Data for the 6-month period January to June are presented in the following Tables. He needs to develop an aggregate production plan. (Questions 4,5,6,7)

Month	January	February	March	April	May	June
Expected Demand	900	700	800	1000	1500	1100
Production Days	20	20	20	20	20	20
Production per day	50	50	50	50	50	50

Cost and other Information

Inventory holding cost	Subcontracting cost	Average Pay rate	Overtime pay rate	Labor hours to produce one unit	Hiring cost	Layoff cost
$1/unit/month	$20 per unit	$10/hour	$17/hour	1.6 hours/ unit	$300/person	$600/person

One possible plan is to maintain a constant work force throughout the 6 month period, 10 employees. Each employee can produce 5 units in one day (8 hours).

Use the following Table as a reference to calculate the total cost for this plan (maintain a constant work force throughout the 6 month period). (Level Strategy)

Month	January	February	March	April	May	June
Expected Demand	900	700	800	1000	1500	1100
Produce
Beginning Inventory
Ending Inventory

Total Inventory Holding Cost is ___.

Group of answer choices

9,000

8,000

1,800

1,700

8,500

Flag question: Question 5

Question 510 pts

Thomas Surfson, the manager of a Wilmington based surf boards manufacturing Company has developed monthly forecasts for a family of surf boards. Data for the 6-month period January to June are presented in the following Tables. He needs to develop an aggregate production plan.

Month	January	February	March	April	May	June
Expected Demand	900	700	800	1000	1500	1100
Production Days	20	20	20	20	20	20
Production per day	50	50	50	50	50	50

Cost and other Information

Inventory holding cost	Subcontracting cost	Average Pay rate	Overtime pay rate	Labor hours to produce one unit	Hiring cost	Layoff cost
$1/unit/month	$20 per unit	$10/hour	$17/hour	1.6 hours/ unit	$300/person	$600/person

One possible plan is to maintain a constant work force throughout the 6 month period, 10 employees. Each employee can produce 5 units in one day (8 hours).

Use the following Table as a reference to calculate the total cost for this plan (maintain a constant work force throughout the 6 month period). (Level Strategy)

Month	January	February	March	April	May	June
Expected Demand	900	700	800	1000	1500	1100
Produce
Beginning Inventory
Ending Inventory

Total Regular time labor cost is ___.

Group of answer choices

94,000

96,000

17,000

18,000

85,000

Flag question: Question 6

Question 610 pts

Thomas Surfson, the manager of a Wilmington based surf boards manufacturing Company has developed monthly forecasts for a family of surf boards. Data for the 6-month period January to June are presented in the following Tables. He needs to develop an aggregate production plan.

Month	January	February	March	April	May	June
Expected Demand	900	700	800	1000	1500	1100
Production Days	20	20	20	20	20	20
Production per day	50	50	50	50	50	50

Cost and other Information

Inventory holding cost	Subcontracting cost	Average Pay rate	Overtime pay rate	Labor hours to produce one unit	Hiring cost	Layoff cost
$1/unit/month	$20 per unit	$10/hour	$17/hour	1.6 hours/ unit	$300/person	$600/person

Another possible plan is to produce exactly what the demand is (Chase Strategy) by hiring and layoffs as needed. Each employee can produce 5 units in one day (8 hours). They have 10 employees in the beginning of January.

Use the following Table as a reference to calculate the total cost for this plan.

Month	January	February	March	April	May	June
Expected Demand	900	700	800	1000	1500	1100
Produce
Production Days	20	20	20	20	20	20
Number of Employees Needed
Number of employees hired
Number of employees laid off

Total hiring cost is ___.

Group of answer choices

2,400

600

2,100

300

1,500

Total lay off cost is ___.

Group of answer choices

1,200

600

1,800

3,600

4,200