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Develop a Chase Aggregate Plan Without Inventory and Back Orders

Question 82

Essay

Develop a chase aggregate plan without inventory and back orders. Do no hiring or firing. When demand exceeds regular production, use overtime up to its maximum and then subcontracting. When demand is less than regular production, use undertime (data given above).
(a) What are the total hours of overtime per employee for the plan?
(b) How many total units are produced using subcontracting?
(c) What are the total hours of undertime per employee for the plan?
(d) What is the total cost?
(e) What is the cost per unit?

Correct Answer:

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(a) 154 hours; (b) 2...

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