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Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast Click the icon to view the demand forecast. Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: More Info Quarter Forecast Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. Plan B: a level strategy. 1 1,900 Plan C: a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest-cost plan? 2 1,200 3 1,500 4 1,000 Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production 1,300 Hire (Units) Layoff (Units) Print Done 1.900 ப More Info Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $45 per case at end of quarter Hiring employees = $35 per case Terminating employees = $70 per case Subcontracting cost = $70 per case Unit cost on regular time = $25 per case

Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast Click the icon to view the demand forecast. Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: More Info Quarter Forecast Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. Plan B: a level strategy. 1 1,900 Plan C: a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest-cost plan? 2 1,200 3 1,500 4 1,000 Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production 1,300 Hire (Units) Layoff (Units) Print Done 1.900 ப More Info Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $45 per case at end of quarter Hiring employees = $35 per case Terminating employees = $70 per case Subcontracting cost = $70 per case Unit cost on regular time = $25 per case

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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w given info solve for all 4 quarters for production, hire, and layoff

Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: Click the icon to view the demand forecast. Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest-cost plan? More Info Quarter Forecast 1 1,900 1,200 1,500 1,000 234 Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production Hire (Units) Layoff (Units) Print Done 1,300 1 1.900 More Info Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $45 per case at end of quarter Hiring employees = $35 per case Terminating employees = $70 per case Subcontracting cost = $70 per case Unit cost on regular time = $25 per case - ☑ ☑
Transcribed Image Text:Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: Click the icon to view the demand forecast. Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest-cost plan? More Info Quarter Forecast 1 1,900 1,200 1,500 1,000 234 Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production Hire (Units) Layoff (Units) Print Done 1,300 1 1.900 More Info Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $45 per case at end of quarter Hiring employees = $35 per case Terminating employees = $70 per case Subcontracting cost = $70 per case Unit cost on regular time = $25 per case - ☑ ☑
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