Concept explainers
a)
To determine: The level of production for Company R with overtime and subcontracting as needed
Introduction: Aggregate production plan deals with production, inventory and workforce level to meet the demand. It’s time ranges from 6 months to 1 year. The objective of the aggregate planning is to maximum utilization of resources and to increase the customer service level.
b)
To determine: The level of production for Company R with backorders as needed
c)
To determine: Production plan for the company R to chase demand using
d)
To determine: 3000 units regular production from April through September and as much regular, overtime, and subcontracting production in the other months as needed to meet annual demand.
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