Business, 19.10.2021 01:30 amoakoh800003

A manager is an app tempting to put together an aggregate plan for the coming year. She has obtained a forecast of expected demand for the planning horizon. The plan must deal with highly seasonal demand as can be seen from the following forecasts: Period 1 2 3 4 5 6 7 8 9
Forecasts demand (units) 190 230 260 280 210 170 160 260 180

The department has 20 full-time operators, each of whom can produce 10 units of output per period. Starting inventory is 40 units and 20% is safety stock.

Cost
Inventory holding cost $5 per unit
Hiring and training cost $300 per worker
Layoff cost $500 per worker
Cost of subcontracting $30 per unit
Regular-time cost $4 per hour
Overtime cost $6 per hour
Backlog cost $10 per unit
A. Determine the total cost of the plan for strategies as below:
a. Hiring and firing, no overtime
b. Constant workforce
c. Subcontracting
B. Which strategy provided the lowest cost?

Answers: 1

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A manager is an app tempting to put together an aggregate plan for the coming year. She has obtained...

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