4. You have been given the following information about production of a product for ABC Company:
Cost per unit: $ 12.50
OT cost per unit: $ 18.75
Holding cost: $ 10.00 Labor hr / unit 8
Labor hrs per emp per month 160.00 Plant capacity 1,800
Cost to hire / train emp $ 800.00
Cost to fire emp $ 500.00
Beginning / ending workforce 90
Beginning inventory 500
Period 1 1,920
Period 2 2,160
Period 3 1,440
Period 4 1,200
Period 5 2,040
Period 6 2,400
Period 7 1,740
Period 8 1,500
Facts given Demand (in units)
a. Develop a level production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.
b. Develop a chase production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.