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:

Latent Factor

An underlying variable that is not directly observed but influences patterns of correlation between observed variables.

Control Factor

An element or variable that is manipulated or held constant in a study or experiment to determine its effect on the outcome.

Independent Variable

In an experiment, the variable that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In research, the outcome factor that is measured to test the impact of variations in the independent variable.