Suppose XYZ Company has the following aggregate demand requirements and other data for the upcoming four quarters.Quarter Demand Other Data 11300Previous quarter’s output1500 Units21400Beginning Inventory200 units31500Stock out cost50$ per unit41300Inventory holding cost10 $ per unit Hiring Workers4$ per unit Firing workers8$ per unit Unit Cost30$ per unit Overtime40 $ per unit Question: Which of the following production plans is better:–Plan A—chase demand by hiring and firing–Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime?

Answered: Suppose XYZ Company has the following…

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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Suppose XYZ Company has the following aggregate demand requirements and other data for the upcoming four quarters.

Quarter	Demand	Other Data
1	1300	Previous quarter’s output	1500 Units
2	1400	Beginning Inventory	200 units
3	1500	Stock out cost	50$ per unit
4	1300	Inventory holding cost	10 $ per unit
		Hiring Workers	4$ per unit
	Firing workers	8$ per unit
	Unit Cost	30$ per unit
	Overtime	40 $ per unit

Question: Which of the following production plans is better:

–Plan A—chase demand by hiring and firing

–Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime?

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