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 Click the icon to view the demand forecast. Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: More Info Quarter Forecast Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. Plan B: a level strategy. 1 1,900 Plan C: a level strategy that produces 1,100 cases per quarter and meets the forecast demand with inventory and subcontracting. a) Which strategy is the lowest-cost plan? 2 1,200 3 1,500 4 1,000 Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production 1,300 Hire (Units) Layoff (Units) Print Done 1.900 ப More Info Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $45 per case at end of quarter Hiring employees = $35 per case Terminating employees = $70 per case Subcontracting cost = $70 per case Unit cost on regular time = $25 per case

Internal supply estimates of human resources are most often done using trend projection forecasting, replacement charts, and human resource audits.   Question 5 options:   True   False

Month January February March April May June Total Demand Average Monthly Demand TABLE 13-4 Soda Galore Planning Data Current workforce 6 workers Average monthly output per worker 4,000 cases per month. 0.80 per case per month Inventory holding cost Regular wage rate Regular production hours/month/worker Overtime wage rate Hiring cost Subcontracting cost Firing/layoff cost Beginning inventory 4,000 (all safety stock) Assume that employees negotiate an increase in the regular production wage rate to $40 per hour and $60 per hour for overtime. Assume Soda Galore always plans to hold at least 4,000 cases of safety stock to meet unanticipated customer demand. Also assume that hiring and layoff/firing, if necessary, occur at the beginning of the month. a. Using the planning information and the newly negotiated wage rates, develop a six-month production plan based on level production. (Leave no cells blank - be certain to enter "0" wherever required.) Act Go to Demand Forecast 16,000 cases…

PP.71 A small manufacturer of specialty welding equipment has developed a combination production plan for the next four quarters, as seen below. Supply/Demand Info Pre-Q1 Q1 4,620 4,620 Forecast (demand) Regular production Subcontract production Ending inventory Hired employees Fired employees Total employees 42 42 Q2 Q3 Q4 4,730 5,390 5,170 5.080 5.060 5.080 330 4 46 The table below shows additional relevant information: Capacity Information & Cost Variables Production rate (units/employee/quarter) Subcontractor capacity (units/quarter) Regular production cost/unit Holding cost'unit/quarter Hiring cost/employee Firing cost/employee Subcontract cost/unit 110 480 $85 $13 $820 $2,150 $119 110 110 46 46 What is the overall total cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) Number What is the total holding cost for this production plan?…