Cost data
regular time labor cost per hour $10
overtime time labor cost per hour $15
subcontracting cost per unit (labor only) $80
back order cost per unit per period $20
inventory holding cost per unit per period $10
hiring cost per employee $500
firing cost per employee $400
capacity data
beginning workforce 40 employees
beginning inventory 0 units
beginning back orders 0 units
production standard per unit (hours) 2 hours of labor per unit
regular time available per period (hours) 160 hours per period per employee
overtime time available per period (hours) 30 hours per period per employee
demand data
period 1 3,920 units period 5 3,800 units
period 2 2,480 units period 6 4,340 units
period 3 2,200 units period 7 4,820 units
period 4 3,280 units period 8 4,600 units
develop a level aggregate plan using inventory and back orders (data given above).
(a) what is the production rate per period? no overtime is to be used. what is the required workforce level and how many workers are hired or fired at the beginning of period 1? what is the maximum ending inventory and when does it occur? what is the maximum amount of back orders and when does it occur? what is the total cost? what is the cost per unit?