The BackPack Company produces a line of backpacks. The manager Jill Nicholas ha

    0

    The BackPack Company produces a line of backpacks. The manager Jill Nicholas has decided that the BackPack Company must have very good customer
    service.

    She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. Use the following
    data to solve the problem:

    Problem Data

    Cost data

    Regular-time labor cost per hour $10.00

    Overtime labor cost per hour $15.00

    Subcontracting cost per unit (labor only) $84.00

    Holding cost per unit per period $10.00

    Back-order cost per unit per period $20.00

    Hiring cost per employee $600.00

    Firing cost per employee $450.00

    Capacity data

    Beginning workforce 210 employees

    Beginning inventory 400 units

    Labor standard per unit 6 hours

    Regular time available per period 160 hours

    Overtime available per period 32 hours

    Subcontracting maximum per period 1000 units

    Subcontracting minimum per period 500 units

    Demand data

    Period 1 6000 units

    Period 2 4800 units

    Period 3 7840 units

    Period 4 5200 units

    Period 5 6560 units

    Period 6 3600 units

    You must:

    A.) Calculate the aggregate production rate: ________ units

    B.) Calculate the appropriate workforce given the aggregate production rate

    C.) Show what would happen if this plan were implemented

    D.) Calculate the costs of this plan

    E.) Evaluate the plan in terms of cost customer service operations and human resources.

                                                                                                                                      Order Now