Given the following calculate (a) cost using a level production plan, (b) cost using a chase aggregate plan, and identify the lowest cost option. In the level production plan backorders are allowed but for each unfilled order it costs the company $10/unit. The employees work an 8 hour day and overtime is not allowed

A) A=5834, B = 5472, C = level
B) A=5472, B = 5834, C = level
C) A=5834, B = 5472, C = chase
D) A=5472, B = 5834, C = chase
E) A =5834, B = 5472, C = either

Question

Given the following calculate (a) cost using a level production plan, (b) cost using a chase aggregate plan, and identify the lowest cost option. In the level production plan backorders are allowed but for each unfilled order it costs the company $10/unit. The employees work an 8 hour day and overtime is not allowed

A) A=5834, B = 5472, C = level 
B) A=5472, B = 5834, C = level 
C) A=5834, B = 5472, C = chase 
D) A=5472, B = 5834, C = chase 
E) A =5834, B = 5472, C = either

Quizplus · Accepted Answer

Level Production Plan
 11ea8e10_ac3c_86b2_8f12_9bf2a7cf2069_TB5472_00 Chase Production Plan
 11ea8e10_ac3c_86b3_8f12_4ff0fd29dd55_TB5472_00

Given the Following Calculate (A) Cost Using a Level Production