2. (30 points) The Austin, Texas plant of Computer Products produces external hard drives for personal and small busine

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2. (30 points)
The Austin, Texas plant of Computer Products produces external
hard drives for personal and small business computers. Gerald
Knox, the plant’s production planning director, is looking over
next year’s sales forecasts for these products and will be
developing an aggregate capacity plan for the plant. The
quarterly sales forecasts for the external hard drives are as
follows:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
1,860
2,700
2,340
2,520
Ample machine capacity exists to produce the forecast.
Each external hard drive takes an average of 20 labor-hours.
In addition, you have collected the following information:
a) You want to maintain a work force capable of producing 2,520
in a quarter and this work force will bee fully utilized each
quarter. If the total demand for a quarter does not require
full production, there will be underutilization and no production
will be carried over to the next quarter. If there is
underutilization, the workers will still be paid at the straight
time rate. Any additional demand that cannot be met during
the quarter by the workforce at 100% production will be carried
over to the next quarter and will be the first demand fulfilled in
that quarter. What is the total cost of this option, excluding the
material cost?
b) Use a matching demand strategy not to exceed production
capacity of 2,520 external hard drives per quarter with overtime
used for any demand above this to ensure that all production
requirements are met during each quarter. What is the total
cost of this option, excluding the material cost?