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Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. E Click the icon to view the four-quarter forecast. E Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Hire Layoff (Units) Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers Unit cost 1 1,400 2 1,000 3 1,600 Overtime 4 1,300 Subcontracting Not available

Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. E Click the icon to view the four-quarter forecast. E Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Hire Layoff (Units) Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers Unit cost 1 1,400 2 1,000 3 1,600 Overtime 4 1,300 Subcontracting Not available

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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### Aggregate Planning for Deb Bishop Health and Beauty Products Deb Bishop Health and Beauty Products has launched a new shampoo, requiring the development of an aggregate schedule. The cost accounting department and the marketing department have provided necessary details for preparing a four-quarter forecast and costs relevant to the aggregate plan. #### Instructions: 1. Click the icon to view the four-quarter forecast. 2. Click the icon to view the costs relevant to the aggregate plan. Your task is to develop an aggregate plan for the next four quarters. **Objective:** Adjust hiring and layoffs as necessary to meet the forecast, entering your responses as whole numbers. --- #### Hiring and Layoff Plan | Quarter | Forecast | Production | Hire (Units) | Layoff (Units) | |---------|----------|------------|--------------|----------------| | 1 | 1,400 | 1,500 | | | #### Quarterly Forecast - **Quarter 1:** 1,400 - **Quarter 2:** 1,000 - **Quarter 3:** 1,600 - **Quarter 4:** 1,300 #### Cost Details - **Previous quarter's output:** 1,500 units - **Beginning inventory:** 0 units - **Stockout cost for backorders:** $45 per unit - **Inventory holding cost:** $9 per unit for every unit held at the end of the quarter - **Hiring workers:** $40 per unit - **Layoff workers:** $70 per unit - **Unit cost:** $35 per unit - **Overtime:** $20 extra per unit - **Subcontracting:** Not available ### Notes: - Developing an effective hiring and layoff plan involves aligning production capabilities with forecast demand while managing costs. - Consider the implications of inventory holding costs and stockout penalties when planning production levels. *This exercise is designed to enhance understanding of aggregate planning in real-world business scenarios.*
Transcribed Image Text:### Aggregate Planning for Deb Bishop Health and Beauty Products Deb Bishop Health and Beauty Products has launched a new shampoo, requiring the development of an aggregate schedule. The cost accounting department and the marketing department have provided necessary details for preparing a four-quarter forecast and costs relevant to the aggregate plan. #### Instructions: 1. Click the icon to view the four-quarter forecast. 2. Click the icon to view the costs relevant to the aggregate plan. Your task is to develop an aggregate plan for the next four quarters. **Objective:** Adjust hiring and layoffs as necessary to meet the forecast, entering your responses as whole numbers. --- #### Hiring and Layoff Plan | Quarter | Forecast | Production | Hire (Units) | Layoff (Units) | |---------|----------|------------|--------------|----------------| | 1 | 1,400 | 1,500 | | | #### Quarterly Forecast - **Quarter 1:** 1,400 - **Quarter 2:** 1,000 - **Quarter 3:** 1,600 - **Quarter 4:** 1,300 #### Cost Details - **Previous quarter's output:** 1,500 units - **Beginning inventory:** 0 units - **Stockout cost for backorders:** $45 per unit - **Inventory holding cost:** $9 per unit for every unit held at the end of the quarter - **Hiring workers:** $40 per unit - **Layoff workers:** $70 per unit - **Unit cost:** $35 per unit - **Overtime:** $20 extra per unit - **Subcontracting:** Not available ### Notes: - Developing an effective hiring and layoff plan involves aligning production capabilities with forecast demand while managing costs. - Consider the implications of inventory holding costs and stockout penalties when planning production levels. *This exercise is designed to enhance understanding of aggregate planning in real-world business scenarios.*
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