Chapter 13, Problem 9P

(a)

Summary Introduction

Interpretation:

The changes that would happen if this plan is implemented.

Concept Introduction:

The regular time production possible each period can be determined using the formula: $\frac{\text{Total no}\text{. of regular time }\times \text{prodution hour avilable per period}}{\text{time required to prodution one unit}}$

(b)

Summary Introduction

Interpretation:

The costs associated with this plan.

Concept Introduction:

The costs associated with this plan use the formulaOvertime cost $\left(C_0\right)$ ${\text{total overtime}}_{hour}\times overtime\cos tperhour$

(c)

Summary Introduction

Interpretation:

The plan in terms of cost, customer service operation and human resources

Concept Introduction:

The aggregate production rate is the average demand rate to calculate the workforce can be done using the formula:

  $C_{unit}=\frac{\text{Total cost}}{\text{Total unit produced}}$