Complete the following aggregate plan for January through April using the Chase
ID: 468953 • Letter: C
Question
Complete the following aggregate plan for January through April using the Chase Strategy. Additional Information: Inventory holding cost = $10 per unit per month, Hiring cost = $50 per unit, Firing cost = $100 per unit, December Production = 230 units Basic Production Cost = $10 per unit Period Forecast Prior Production Inventory # hire units # fire units Extra Cost December ----- 20 ----- ----- January 350 February 300 March 280 April 460 What is theTotal Cost generated by this plan? $20,700 $28,700 $32,700 $35,700
Explanation / Answer
Holding Cost
10
$/month
Dec Prod=
230
units
hiring cost
50
$/unit
firing cost
100
$/unit
Production cost
10
$/unit
Period
Forecast
Inventory
Hire units
Fire units
Hiring cost
Firing cost
Production cost
Holding cost
Jan
350
0
120
0
6000
0
3500
0
Feb
300
0
0
50
0
5000
3000
0
Mar
280
0
0
20
0
2000
2800
0
Apr
460
0
180
0
9000
0
4600
0
Total
15000
7000
13900
0
Total cost generated
$35,900
Holding Cost
10
$/month
Dec Prod=
230
units
hiring cost
50
$/unit
firing cost
100
$/unit
Production cost
10
$/unit
Period
Forecast
Inventory
Hire units
Fire units
Hiring cost
Firing cost
Production cost
Holding cost
Jan
350
0
120
0
6000
0
3500
0
Feb
300
0
0
50
0
5000
3000
0
Mar
280
0
0
20
0
2000
2800
0
Apr
460
0
180
0
9000
0
4600
0
Total
15000
7000
13900
0
Total cost generated
$35,900