Eagle Fabrication Has the Following Aggregate Demand Requirements and Other

question 102

Essay

Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
$$\begin{array} { | l | l | l | l | } \hline \text { Quarter } & \text { Demand } & \text { Previous quarter's output } & 1500 \text { units } \\\hline 1 & 1300 & \text { Beginning inventory } & 200 \text { units } \\\hline 2& 1400 & \text { Stockout cost } & \$ 50 \text { per unit } \\\hline 3 & 1500 & \text { Inventory holding cost } & \$ 10 \text { per unit at end of quarter } \\\hline 4 & 1300 & \text { Hiring workers } & \$ 4 \text { per unit } \\\hline & & \text { Laying off workers } & \$ 8 \text { per unit } \\\hline & & \text { Unit cost } & \$ 30 \text { per unit } \\\hline & & \text { Overtime } & \$ 10 \text { extra per unit } \\\hline\end{array}$$ Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; or Plan B-produce at a constant rate of 1200 and obtain the remainder from overtime?

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Definitions:

Proportional Representation System

An electoral arrangement that translates the number of votes received by political parties into a proportionate number of seats in the legislative body.

Winner-Take-All System

A winner-take-all system is an electoral system in which the candidate receiving the most votes wins the office or prize in question, with no rewards for those who finish second or lower.

Proportional Representation

Proportional representation is an electoral system in which parties gain seats in proportion to the number of votes cast for them.

Single-Seat

Pertaining to electoral systems or legislative chambers in which one representative is elected from each district or constituency.