Assignment:
1. A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per bag.
(a) Calculate the economic order quantity.
(b) Calculate the total annual costs.
(c) Determine the reorder point.
2. Jill has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must:
(a) Calculate the aggregate production rate.
(b) Calculate the appropriate workforce given the aggregate production rate.
(c) Show what would happen if this plan were implemented.
(d) Calculate the costs of this plan.
(e) Evaluate the plan in terms of cost, customer service, operations, and human resources.