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

See similar textbooks

Related questions

Q: The following information relates to a company’s aggregate production planning activities:…

A: Level production strategy refers to the constant production rate irrespective of demand forecast. In…

Q: Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming…

A: Given Information: Step 1: Quarter Demand 1 1400 2 1000 3 1500 4…

Q: what is the strategy means vary production rates to meet changes in demand, it is often used when…

A: In general terms, strategy refers to the set of action plan devised by an organization in order to…

Q: Lunar Co.Ltd's estimated demand for the next 6 months in 2021 is as follows: Month Demand July…

A: Given, Below is the demand for the six months Month Demand July 1500 August 1700 September…

Q: Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its…

A: Given-

Q: he following data below gives information for ABCO building supplies. Cost of goods sold last year…

A: Inventory Turnover Ratio is calculated with the help of following formula Inventory Turnover Ratio…

Q: What are the major difference between aggregate planning in manufacturing and aggregate planning in…

A: Aggregate Planning by definition is concerned with determining the quantity and scheduling of…

Q: 2.15 The opening backlog is 900 units. Forecast demand is shown in the following. Calculate the…

A: The opening backlog = 900 units Projected ending backlog = 200 units

Q: WSS company makes weatherproof surveillance systems for parking lots. Demand estimates for the next…

A: Find the given details below: Given details: Quarter 1 2 3 4 Demand 25 9 13 17 Calculation…

Q: The demand information is given below. Month Demand Jan 1,900 Feb 2,900 Mar Apr May Jun 4,800 5,800…

A: A production strategy frames the methodology an organisation takes to fabricate merchandise or…

Q: How many of L is needed? 1,200 300 600 900 1,800

A: The gift bag is being given as a complimentary to all the party attendees that are prospects for the…

Q: Plan production for a four-month period: February through May. For February and March, you should…

A: Aggregate plans show output rates, workforce levels, and inventory in accordance with demand and…

Q: In each of the following, name the term defined or answer the question. Answers are listed at the…

A: 1) “Sales and operations planning (S & OP)” is the term used to indicate a process where a firm…

Q: A 10-week planning period has projected a forecast of 50 units. Create a master production schedule…

A: MPS happens when available innevntory is less than maximum value of customer order, forecast demand.

Q: Trial and Error is to be used to determine a production plan with a Level Production strategy. How…

A: Here, for each quarter, I have been given the forecasted demand data, there is no beginning…

Q: In aggregate planning ,the option that tries to smooth the demand pattern, but do not impact supply…

A: Aggregate planning is a methodology involved for analyzing, developing and maintaining the…

Q: Describe the different demand-based options used in aggregate planning and their implications for a…

A: Aggregate Planning - Aggregate planning is the process of developing, analyzing, and maintaining a…

Q: Given the projected demands for the next six months, prepare an aggregate plan that uses inventory,…

A: Find the Calculation methods below: Output Forecast = (Regular Output - Forecast) + Overtime +…

Q: FCB Inc. has the following aggregate demand requirements and other data for the upcoming four…

A: Find the given details below:

Q: EE Company has the following aggregate demand requirements and data for the upcoming four quarters.…

A: A deadline is the last or the target date before which the task has to be done.If the task is not…

Q: Demand for a product is forecasted for the six periods is 263, 256, 301, 312, 304, and 294…

A: The company has the capacity to produce 280 units per period. Hence, the company will not need to…

Q: as or commas A/ A/ << < A 2 A A Answers should be whole numbers. Hi Hi Hi

A: *Answer: Formulation:

Q: List the strategic objectives of aggregate planning. Which one of these is most often addressed by…

A: Meaning of Aggregate planning:- An association can settle its marketable strategies on the proposal…

Q: 8. When will the manager need to place their Second order? write the week number example: 1

A: I have created the table based on the given information in the question,

Q: What is the BOM stock needed for the shoe department for April if the sales are planned at $64,000…

A: A bill of materials (BOM) is a detailed list of all the raw materials, assemblies, subassemblies,…

Q: The table below provides the aggregate plan of messanger bags produced by Timbuk2. It is known that…

A: Given aggregate plan-

Q: LMNO Gaskets has formulated a production plan for a product to meet demand over the upcoming four…

A: Find the Calculation methods below: As per the transportation-Aggregate planning method, the…

Q: Aggregate Planning A company has the following aggregate demand requirements and other data for the…

A: In chase aggregate planning, the output production is matched with the demand either by using…

Q: Briefly discuss the managerial significance of aggregate planning with reference to capital…

A: Aggregate planning is a production planning strategy that is also a marketing activity that is used…

Q: WSS company makes weatherproof surveillance systems for parking lots. Demand estimates for the next…

A: Find the Given details below: Given details: Quarter 1 2 3 4 Demand 25 9 13 17

Q: An X product is composed of A, B, C items. The aggregate plan for February and some of the…

A: An X product is composed of A, B, C items. The aggregate plan for February and some of the…

Q: The table below provides the aggregate plan of messanger bags produced by Timbuk2. It is known that…

A: Given aggregate plan-

Q: The production planning period for the flat-screen monitors an electronic manufacturing. Regular…

A: Find the Given details below: Given details: Month 1 Month 2 Month 3 Month 4 Demand 2000…

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.

Similar questions

Explain how an aggregate production plan is made.
The factors are the most often used for manufacturing aggregate planning?In the context of a service?
The total planned expenditures is called as aggregate demand Select one: True False
Is a chase or level strategy more appropriate for aggregate planning in an air conditioning manufacturing plant where demand is highly seasonal and the workforce is relatively skilled? Explain your answer.
Sumarise the service demand management strategies that can be utilized for aggregate planning.
A stock or s+ Туpe Chase Production Plan: Example • Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. • Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. 3. 4. 7 8. MONTH 1 140 120 125 125 140 135 Forecast 120 135 Chase Production Plan Calculation
Assume that Blue Button Manufacturing (BBM) has accepted the merits of aggregate planning. You have been requested to indicate the way forward and must recommend an aggregate planning strategy to the management team. Write a report in which you describe the concept “trade-offs in aggregate planning”, identify the potential strategies that could be followed, including the use case for each strategy, and then substantiate your choice of strategy for BBM
Which of the following are the inputs for the material requirements planning? Master production scheduling, bill of materials, and inventory records Master production scheduling, aggregate planning, and inventory records Aggregate planning, bill of materials, and inventory records Master production scheduling, aggregate planning, and bill of materials
From the following production plan, the Manager wants to determine the quantities to order and wants to use the following dynamic methods. Estimate the quantities to order by the Silver and Meal method in order to cover demand at a lower cost and run out of final inventory. The unit cost is $ 20 while the preparation cost is $ 100 and keeping a unit in inventory is $ 2 per period.** In case in some period it is not requested, please write 0
List strategic aggregate strategy priorities. What of these are the computational methods of aggregate planning more commonly addressed? What is one of these?The most relevant generally?
evelop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 9,700; winter, 8,000; spring, 7,000; summer, 11,700. Inventory at the beginning of fall is 485 units. At the beginning of fall you currently have 35 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring only if overtime is necessary to prevent stockouts at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, $80 for each temp; layoff, $160 for each worker laid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour; overtime, $8 per hour. Assume that the productivity is 0.5 unit per worker hour, with eight hours per day and 60 days per season. In each quarter, produce to the full output of your regular workforce, even if that…
What is the relationship between the aggregate plan andthe master production schedule?