1. Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. Th

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1 Deb Bishop Health And Beauty Products Has Developed A New Shampoo And You Need To Develop Its Aggregate Schedule Th 1 (39.29 KiB) Viewed 9 times

1. Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as follows: Quarter 1 2 3 4 COSTS Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Per unit cost of labor Overtime Subcontracting Forecast 1,450 1,250 1,400 1,350 1,500 units O units $45 per unit $10 per unit for every unit held at the end of the quarter $40 per unit $75 per unit $30 per unit $45 per unit Not available Your job is to develop an aggregate plan for the next four quarters. a. First, try hiring and layoffs (to meet the forecast) as necessary. b. Then try a plan that holds employment steady at a constant production rate with no overtime and no subcontracting. c. Next try a plan that uses a constant workforce to meet the lowest demand quarter and overtime to meet additional needs in higher demand quarters. d. Which is the more economical plan for Deb Bishop Health and Beauty Products? NOTE: Don't forget to change employment from the previous quarter's output on the chart. Also, you do not need daily production rates, just quarterly production rates for this problem