Assignment Task: Use the following data and answer the following:
Opening Stock: 120 units
Desired Closing Stock: 240 units
Back-order Costs: $ 50/ unit
In-house production costs: $ 45 per unit
Subcontract Production costs: $ 65 per unit
Inventory Holding costs: $10 / unit/ month
Production Capacity: 20 units per month per worker
There are currently 100 workers employed
Hiring Costs 400$ per worker
Firing Costs 800S per worker
Question 1: Using the data, develop a Level Production plan. Calculate the total cost.
Question 2: Using the data, develop a Chase Production plan. Calculate the total cost.
Question 3: Using the data, develop a Subcontract Production plan. Calculate the total cost.