50.1K

Verified Solution

Link Copied!

2. Suppose that on December 21 the long-range weather forecast is released by the weather service and more snow than normal is predicted. As a result, the Marketing Dept. raises their forecast for Quarter I sales of blowers from 9,000 to 11,000 units (the forecasts for the other quarters remain unchanged). You will now have to develop and analyze several alternative plans for next year. Keep in mind that each of these plans must include: a) Beginning Inv. of 600 mowers and 400 blowers b) Ending Inventory and backorders for Qtr. IV must be zero c) Each plan must have the same level total output rate each quarter

A. Develop a plan that uses over time by regular, full-time employees to meet the new demand conditions.

B. Plan 2-B will use regular employees (no overtime) plus subcontracting to meet the new demand conditions.

C. Another possibility would be to hire an additional full-time employee on Jan. 2 and employ him/her for the full year.

Using the Aggregate Planning worksheet

17 AGGREGATE PLANNING WORKSHEET (4 PERIOD FORMA Total Period Forecast Output Regular Overtime Part-Time Subcontract Output- Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular S Overtime $ Part-Time Subcontract Hiring S Layor-Firing InventoryS Backorder$ Total rotal Annual Cost 17 AGGREGATE PLANNING WORKSHEET (4 PERIOD FORMA Total Period Forecast Output Regular Overtime Part-Time Subcontract Output- Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular S Overtime $ Part-Time Subcontract Hiring S Layor-Firing InventoryS Backorder$ Total rotal Annual Cost

Answer & Explanation Solved by verified expert

See Answer