hat would be your production rate each month? A. 4250 B. 3500 OC. 4250, 3000, 4000, 5000 OD. 2000, 6000, 4000, 5000 hat is the ending inventory in Quarter 2 A. 500 OB. 2250 OC. 2500
hat would be your production rate each month? A. 4250 B. 3500 OC. 4250, 3000, 4000, 5000 OD. 2000, 6000, 4000, 5000 hat is the ending inventory in Quarter 2 A. 500 OB. 2250 OC. 2500
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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Question

Transcribed Image Text:What is the labor cost of quarter 2?
A. $180,000
B. $120,000
C. $60,000
O D. $70,000

Transcribed Image Text:A Company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase strategy would be
better. They have the following information available regarding their production operation:
Hiring workers
Layoff workers
Inventory holding Cost
Stockout cost for backorders
Production (Labor) cost
Subcontracting cost
Previous quarter's production
Beginning inventoy
Quarter forecasts are 2000, 6000, 4000, 5000, respectively.
This problem has questions.
Suppose that you want to use a level plan with backorders (one that produces at the average demand over the four quarters). Answer the next two questions
using this plan.
Do not round your intermediate calculations. Round your final answer to the nearest whole number.
What would be your production rate each month?
A. 4250
B. 3500
C. 4250, 3000, 4000, 5000
D. 2000, 6000, 4000, 5000
What is the ending inventory in Quarter 2
A. 500
B. 2250
C. 2500
D. 0
Suppose that you want to use a chase plan. Answer the next three questions using this plan.
Do not round your intermediate calculations. Round your final answer to the nearest whole number.
What is your production rate in quarter 2?
A. 6000
B. 4000
C. 2000
D. 4250
$40 per unit
$80 per unit
$40 per unit per quarter
$150 per unit
$30 per unit
$60 per unit
1300 units
0 units
What is the hiring/layoff cost of quarter 3?
A. $1,000
B. Insufficient information is provided
C. $28,000
D. 0
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