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Engineering, 28.02.2021 14:10 bernie24

A concrete block making company is developing an aggregate capacity plan from the following sales forecast for its 6” and 8” concrete blocks shown in the table below. Product Sales Forecasts (Concrete Blocks) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 6” Block 2,000 1,500 1,600 1,800 8” Block 1,200 1,000 800 1,000 Ample machine capacity exists to produce the forecast. Each 6” concrete block takes an average of 20 labour-hours while each 8” concrete block takes an average of 15 labour-hours. a) Compute the aggregate number of labour-hours in each quarter. b) If the plant works the same number of days in each quarter, 13 five-day weeks on a single shift, how many workers will be required in each quarter? c) It costs $1,000 to hire a worker and $500 to lay off a worker, and inventory carrying cost is $100 for each 6” concrete block and $100 for each 8” concrete block (this means that if one 6” concrete block were held in inventory for a year, it would cost $100 for finance charge, insurance, warehousing expense, etc.). The plant works the same number of days in each quarter, 13 five-day weeks. Assuming that the quarterly demand pattern repeats from year to year, compute the cost of each of the following two aggregate plans for next year: i. Chase strategy plan. Beginning inventory in this plan is zero for both types of concrete blocks. ii. Level strategy plan. Beginning inventory in this plan is 275 for 6” concrete blocks and 200 for 8” concrete blocks.

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