The Hoosier Products Corporation produces outdoor furniture, among other products. Starting at the beginning of the Spring quarter, following is relevant data for the next year:
Spring 5,000 Initial Inventory: 500
Summer 8,000 Regular Labor Cost :$10/workhour
Fall 6,000 Labor hours required per unit of furniture:3.0
There are 60 workdays per quarter, and 8 work hours per day. Please Use aggregate planning worksheets to show the answer.
1. Using a pure level aggregate plan, what will be the inventory level at the beginning of the summer quarter? (When figuring the required workforce in this plan, round up to the nearest integer if necessary. The amount produced each quarter should be the maximum possible given your workforce level - don't under-produce. When figuring the amount produced each quarter, round off to the nearest integer if necessary. Do not do any other rounding in your interim calculations.)
2. Using a pure chase plan, how many employees will be needed for the Spring quarter? (When computing the number of employees for the quarter, round up to the nearest integer if necessary. Do not forget to consider beginning inventory.
3. Using a chase plan, and assuming that you produce to the full capacity of your workers (don't under-produce), what will be the beginning inventory for the Fall quarter?
This solution calculates the inventory levels and workforce requirements for a company based on demand and other contraints.