A local company makes athletic clothing and they are preparing aggregate production plans on a quarterly basis for the coming year for their line of women's wear.They have the following information available to develop a level capacity and a matching demand plan:
Number of working days per quarter = 65 days
Number of hours per day per person = 8 hours
Labor standard to produce one unit = 5 hours
Demand for four quarters respectively:
12,300, 12,500, 12,200, 13,000 units
Cost of hiring a worker = $800
Cost of laying off a worker = $500
Inventory carrying cost per unit per year = $60
a.Using a level capacity plan, how many workers are needed each quarter?
b.For a matching demand plan, how many workers are needed each quarter respectively?
c.What is the inventory carrying cost using a level capacity plan?
d.What is the total cost to hire workers under a matching demand plan?

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The Answer of A local company makes athletic clothing and they are preparing aggregate production plans on a quarterly basis for the coming year for their line of women's wear.They have the following information available to develop a level capacity and a matching demand plan:
Number of working days per quarter = 65 days
Number of hours per day per person = 8 hours
Labor standard to produce one unit = 5 hours
Demand for four quarters respectively:
12,300, 12,500, 12,200, 13,000 units
Cost of hiring a worker = $800
Cost of laying off a worker = $500
Inventory carrying cost per unit per year = $60
a.Using a level capacity plan, how many workers are needed each quarter?
b.For a matching demand plan, how many workers are needed each quarter respectively?
c.What is the inventory carrying cost using a level capacity plan?
d.What is the total cost to hire workers under a matching demand plan?

A Local Company Makes Athletic Clothing and They Are Preparing