Develop a Hybrid Aggregate Plan with Inventory, but No Back

question 23

Essay

Develop a hybrid aggregate plan with inventory, but no back orders. Also, use no undertime and no subcontracting. Also use no firing, since the company is projecting a 20% annual growth rate per year over the next several years. When demand minus opening inventory exceeds regular plus maximum overtime production, hire enough employees to meet demand, working as much overtime as possible. When demand is less than regular time production, work no overtime and add to inventory (data given above).
(a) What is the workforce at the end of the last period? How many total were hired?
(b) How many total units were produced using overtime?
(c) What is the maximum ending inventory and when does it occur?
(d) What is the total cost?
(e) What is the cost per unit?

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Definitions:

Social Costs

The total cost to society, including both the private costs borne by producers and also any external costs to others not involved in the transaction.

Social Benefits

The aggregate advantage to society derived from the production or consumption of a product, encompassing both individual benefits and any additional external advantages.

Pay-per-view Movies

A service that allows consumers to pay for individual movies to watch rather than subscribing to a broad service offering.

Common Resource

A resource like air or water that is available to all but can be depleted by overuse.