A Company Is Interested in Developing a Quarterly Aggregate Production

question 20

Essay

A company is interested in developing a quarterly aggregate production plan but they aren't sure if level capacity or matching demand would be better.They have the following information available regarding their production operation:
Number of working days per quarter = 65 days
Number of hours per day per person = 8 hours
Labor standard to produce one unit = 3 hours
Demand for four quarters respectively:
40,000, 42,000, 41,000, and 44,000 units
a.Using a level capacity plan, how many workers would be needed each quarter?
b.For a level capacity plan, what is the beginning inventory in quarter 2?
c.Using a level capacity plan, in how many quarters are the machine requirements over capacity?
d.Using a matching demand plan, how many workers are needed for quarter 1?
e.How many additional workers are needed in quarter 2 under a matching demand plan?

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