Develop an aggregate planning using level production what


 

The Seymore Bicycle manufacturing company of Boise, Idaho has developed the following demand forecast for next year's bicycle:

Quarter             1                      2                      3                      4

Sales                5,000               10,000             8,000               2,000

On January 1, there are 1,000 units in inventory. The firm has prepared the following data:

Hiring cost/employee = $ 200

Firing cost/employee = $ 400

Beginning workforce = 60

Inventory carrying cost = $2 per unit per quarter of ending inventory

Stockout cost = $ 5

Regular payroll = $ 1200

Overtime cost = $ 2 per unit, limited to 40 units per employee per quarter

Each employee can produce 200 units per quarter on regular time

Demand not satisfied in any quarter is lost

Develop an aggregate planning using level production.

What will be the hiring firing strategy in chase production?

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Operation Management: Develop an aggregate planning using level production what
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