ABC Manufacturing has the following Aggregate Plan demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1300 Beginning inventory 200 units 2 1400 Stockout cost $50 per unit 3 1500 Inventory holding cost $10 per unit at end of quarter 4 1300 Hiring workers $4 per unit Laying off workers $8 per unit Unit cost $30 per unit Overtime $10 extra per unit By utilizing the aggregate planning excel sheet, answer the following: a. Plan A - Chase demand by hiring and laying off. What is the total cost of the plan? [ Select ] b. Plan B - Mixed strategy producing at a constant rate of 1200 and obtaining the remainder from Overtime. What is the cost of this plan? [ Select ] c. Based on cost, what plan should be chosen?
ABC Manufacturing has the following Aggregate Plan demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1300 Beginning inventory 200 units 2 1400 Stockout cost $50 per unit 3 1500 Inventory holding cost $10 per unit at end of quarter 4 1300 Hiring workers $4 per unit Laying off workers $8 per unit Unit cost $30 per unit Overtime $10 extra per unit By utilizing the aggregate planning excel sheet, answer the following: a. Plan A - Chase demand by hiring and laying off. What is the total cost of the plan? [ Select ] b. Plan B - Mixed strategy producing at a constant rate of 1200 and obtaining the remainder from Overtime. What is the cost of this plan? [ Select ] c. Based on cost, what plan should be chosen?
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