Right now is Oct 27, 2021. You are developing an aggregate production pla For 2022. Suppose the beginning inventory at the first quarter of 2022 is estimated to pe 132 units. The forecasted demand for Quarter 1 through Quarter 4 of 2022 are 1,009, 1,032, 1,427, and 1,476 units, respectively. The regular-time production in Quarter 4 2021 is 1,463 units. The ending inventory in Quarter 4 2021 is 132 units. The cost of regular-time production is $84 per unit while the cost of overtime production per unit is 29% more than the cost of regular-time production per unit. The cost of decreasing regular-time production is $31 per unit. The cost of increasing

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Right now is Oct 27, 2021. You are developing an aggregate production plan
for 2022.
Suppose the beginning inventory at the first quarter of 2022 is estimated to
be 132 units.
The forecasted demand for Quarter 1 through Quarter 4 of 2022 are 1,009,
1,032, 1,427,
and 1,476 units, respectively. The regular-time production in Quarter 4
2021 is 1,463 units.
The ending inventory in Quarter 4 2021 is 132 units.
The cost of regular-time production is $84 per unit while the cost of
overtime production
per unit is 29% more than the cost of regular-time production per unit. The
cost of
decreasing regular-time production is $31 per unit. The cost of increasing
regular-time
production is $40 per unit.
You want to use the chase production plan without overtime and the
demand in each quarter
must be satisfied. What is the decrease in regular-time production (if any) in
Quarter 2 of 2022?
Transcribed Image Text:Right now is Oct 27, 2021. You are developing an aggregate production plan for 2022. Suppose the beginning inventory at the first quarter of 2022 is estimated to be 132 units. The forecasted demand for Quarter 1 through Quarter 4 of 2022 are 1,009, 1,032, 1,427, and 1,476 units, respectively. The regular-time production in Quarter 4 2021 is 1,463 units. The ending inventory in Quarter 4 2021 is 132 units. The cost of regular-time production is $84 per unit while the cost of overtime production per unit is 29% more than the cost of regular-time production per unit. The cost of decreasing regular-time production is $31 per unit. The cost of increasing regular-time production is $40 per unit. You want to use the chase production plan without overtime and the demand in each quarter must be satisfied. What is the decrease in regular-time production (if any) in Quarter 2 of 2022?
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