Develop a level production plan for abc

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Reference no: EM13672282

4. You have been given the following information about production of a product for ABC Company:

Cost per unit: $ 12.50

OT cost per unit: $ 18.75

Holding cost: $ 10.00 Labor hr / unit 8

Labor hrs per emp per month 160.00 Plant capacity 1,800

Cost to hire / train emp $ 800.00

Cost to fire emp $ 500.00

Beginning / ending workforce 90

Beginning inventory 500

Period 1 1,920

Period 2 2,160

Period 3 1,440

Period 4 1,200

Period 5 2,040

Period 6 2,400

Period 7 1,740

Period 8 1,500

Facts given Demand (in units)

a. Develop a level production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.

b. Develop a chase production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.

Reference no: EM13672282

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