Homework_Ch14

Homework_Ch14 - Shortage cost: $20 per unit per month...

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Homework – Chapter 14 (Aggregate Planning) DAT, Inc. needs to develop an aggregate plan for its product line. Relevant data are Production time: 1 hour per unit Average labor cost: $10/hour Workweek: 5 days, 8 hours per day Days per month: Assume 20 days per month Hiring cost: $300/worker Layoff cost: $400/worker Beginning inventory: 200 units Safety stock: None
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Unformatted text preview: Shortage cost: $20 per unit per month Inventory cost: $5 per unit per month Outsourced cost: $12/unit DAT Inc. currently employs 18 workers. The forecast for the next 6 months is: Jan. Feb. Mar. Apr. May June 2400 3000 4000 3500 3500 3000 Should the company use a chase strategy, a level strategy or a stable strategy with outsourcing?...
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