The following is an aggregate plan. The following are the requirements and other data for the upcoming 6 months. Demand levels are: M1 3300, M2 2700, M3 2550, M4 2010, M5 2950, M6 3400 Previous quarter's output is 2250. Beginning inventory is 550 units. The organizations policy is not to backorder. Given that policy, if the item is not in stock, then the company will incur an average lost sales cost of $157.50. Inventory holding cost is 55.65. If the organization needs to hire worker the cost will be $4 per every 30 units, and layoff workers will be $6 per every 30 units. Regular time production is $125.00 per unit, Overtime is $63.00 extra. If the company decided to work O.T. then, based on internal cost and safety goals will only be able to utilize 300 units per month. The subcontractor that the organization utilizes costs $215.00 per unit, with having a capacity level of being able to provide up to 400 units per month a. Produce utilizing a chase demand by varying the workforce. What is the overall cost of the plan? [ Select ] ["$2,564,135", "$2,789,250", "$2,236,880", "$3,100,720", "$2,822,395"] b. How many units did you decrease (layoff) during the 6-month planning period, and what was the cost? [ Select ] ["2,440; $292,800", "1,239; $223,020", "1,290; $232,200", "Based on this strategy, there was no need to reduce the staffing per unit", "Base on period two, 600 units; $108,000"] c. Produce utilizing a chase strategy based on the prior month. What is the overall cost? $2,701,894 d. Did the company incur any lost sales? If so, how many and and what was the cost? [ Select ] ["600 units; $94,500", "320 units; $34,780", "450 units; $75,340", "3000 units; $166,394", "1000 units; $120,600"] e. Using a level production strategy at 2,550, what is the overall cost of the plan? $2,153,292 f. Was there a need to hold inventory? If so how many units and what was the cost? 680 units; $37,842 g. Based on a mixed strategy, with a level production rate of the minimum demand period, then utilize Overtime, then subcontracting, what is the total cost of this plan? [ Select ] ["$1,945,229", "$2,378,925", "$1,888,561", "$2,245,780", "$2,672,946"] h. What was the total cost of overtime and subcontracting? [ Select ] ["$1,507,500", "$567,209", "$675,450", "$740,993", "$450,230"] i. What is the most cost-effective plan?
