Which strategy is the lowest cost plan

Assignment Help Project Management

Reference no: EM131259961

Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast:

1485_Fig 5.jpg

John's job is to develop an aggregate plan. The three initial options he wants to evaluate are:
? Plan A: a strategy that hires and fi res personnel as necessary to meet the forecast.
? Plan B: a level strategy.
? Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecast demand with inventory and subcontracting.

a) Which strategy is the lowest-cost plan?

b) If you are John's boss, the VP for operations, which plan do you implement and why.

Reference no: EM131259961

Questions Cloud

Elasticity of the demand for memberships : Is the demand curve shallow or steep? What does this mean about the elasticity of the demand for memberships?

Was america ever a homogeneous society : Answer this question: Was America ever a homogeneous society? If not, explain why and give a term(s) that would more accurately and idealistically portray a view of diversity in America. Incorporate a discussion of the differences between referenc..

Determining the accountant definitions : What is his profit or loss by an accountant's definitions? Instructions: Round your answer to the nearest whole dollar and use a (-) if the number is negative.

Assessing capital projects : Research Dominion Virginia Power and find capital projects Dominion has completed in the last 5 to 10 years. Explain the project assessment methods the organization should have used to assess these projects (IRR, NPV, payback, and ARR). What are t..

Which strategy is the lowest cost plan : Which strategy is the lowest-cost plan? - If you are John's boss, the VP for operations, which plan do you implement and why.

Discuss this situation in terms of internal control : Simon Blfpstk Construction Company has two divisions. The president (Chris Simon) manages the roofing division. Simon delegated authority and responsibility for management of the modular manufacturing division to John Gault. Discuss this situation in..

Explain how being virtuous defines you : Discuss how being virtuous defines you. Examine your cultural ideas of virtues and how they compare with other cultures. Explain how your idea of being virtuous fits within a cultural context.

Briefly propose solution to address the limitations : Assess whether there are any changes or modifications necessary to make Rule 102 integrity and Objectivity, and Rule 203 Accounting Principles more effective. If not, justify your reasons. If so, briefly propose a solution to address the limitations.

Should henrietta lacks descendants receive remuneration : Should Henrietta Lacks' descendants receive remuneration for the products resulting from the research conducted with HeLa cells? Support your rationale with legal principles. If Ms. Lacks had given informed consent, would your opinion change?

User Account

All Pages