Complete the Table B on the following page to create the aggregate plan based on the chase production strategy including hiring and firing to meet demand exactly Cost ElementCostMonthDemandRegular production costOvertime labor cost$13 per hourForecast(units)5600$20 perhourAugustSeptember4500Holding cost per$6 per unitPeriodOctober7500Back-order cost per$10 per unitNovember5500PeriodDecember6900Hiring costFiring cost$600 per employee$300 per employeeJanuary4200Capacity ElementBeginning workforceBeginning inventoryLabor required per unitRegular time available per employeeOvertime available per employeeData220 employee350 units5 hours150 hours per month25 hourspermonth Table B: Chase production planMonthDemandProduction Plan# Workers# Workers Hired# Workers FiredForecastNeededAugust5700September4500October7500November3300December6900January4300

Chase production plan refers to the plan in which the production is planned according to the demand…

Table B: Chase production plan Моnth Demand Production Plan # Workers # Workers Hired # Workers Fired Forecast 5700 Needed August September 4500 October 7500 November 5500 December 6900 January 4300

Table B: Chase production plan Моnth Demand Production Plan # Workers # Workers Hired # Workers Fired Forecast 5700 Needed August September 4500 October 7500 November 5500 December 6900 January 4300

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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Concept explainers

Aggregate Planning Strategies

On the basis of the demand forecast, an organization can complete its business plans. When the business plans are complete, an organization can work backward from the completed total sales to the raw materials needed. Thus, annual and quarterly plans are divided into labor, raw material, working capital, and other demands for a medium-term period (6 months to 18 months). This process of evaluating moderate production requirements is known as aggregate planning.

Question

Complete the Table B on the following page to create the aggregate plan based on the chase production strategy including hiring and firing to meet demand exactly

Cost Element
Cost
Month
Demand
Regular production cost
Overtime labor cost
$13 per hour
Forecast(units)
5600
$20 per
hour
August
September
4500
Holding cost per
$6 per unit
Period
October
7500
Back-order cost per
$10 per unit
November
5500
Period
December
6900
Hiring cost
Firing cost
$600 per employee
$300 per employee
January
4200
Capacity Element
Beginning workforce
Beginning inventory
Labor required per unit
Regular time available per employee
Overtime available per employee
Data
220 employee
350 units
5 hours
150 hours per month
25 hours
per
month

Table B: Chase production plan
Month
Demand
Production Plan
# Workers
# Workers Hired
# Workers Fired
Forecast
Needed
August
5700
September
4500
October
7500
November
3300
December
6900
January
4300

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