Question 1
Osprey Machine Works has the following demand requirements and other data for the upcoming four quarters.
| Quarter | Demand | | Previous quarter's output | 2500 units |
| 1 | 2300 | | Beginning inventory | 200 units |
| 2 | 2400 | | Stockout (backorder) cost | $50 per unit |
3 |
2600 | |
Inventory holding cost | $10 per unit at
end of quarter |
| 4 | 2100 | | Hiring workers | $4 per unit |
| | | | Laying off workers | $8 per unit |
| | | | Unit cost | $30 per unit |
| | | | Overtime | $10 extra per unit |
What is the total cost of pursuing a level aggregate plan over the coming year?
Question 2
Golden Eagle Machine Works has the following demand requirements and other data for the upcoming four quarters.
| Quarter | Demand | | Previous quarter's output | 2500 units |
| 1 | 2300 | | Beginning inventory | 200 units |
| 2 | 2400 | | Stockout (backorder) cost | $50 per unit |
3 |
2600 | |
Inventory holding cost | $10 per unit at
end of quarter |
| 4 | 2100 | | Hiring workers | $4 per unit |
| | | | Laying off workers | $8 per unit |
| | | | Unit cost | $30 per unit |
What is the total cost of pursuing a chase aggregate plan over the coming year?
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