Assess plan A: strategy that hires and fires employees to meet the forecasted demand.Assess plan B: strategy that produces 1,200 cases per quarter and meets the forecasted demand with inventory and subcontracting. a)GOT7 Soda Pop, Inc., has a new fruits drink. The production planner hasassembled the following cost data and demand forecast as follow:Quarter DemandFirst1,800Second 1,200Third1,600Fourth 1,300Table 1: Cost and demand forecastPrevious quater's outputBeginning inventoryStockout costInventory holding costHiring employeesTerminating employeesSubcontracting costUnit cost on regular timeOvertime cost1,300 cases0 casesRM150RM40 per case at the end of quaterRM40 per caseRM80 per caseRM60 per caseRM30 per caseRM15 extra per caseYou as the production planner need to develop an aggregate planning. You are requiredto:

Ans) Plan A: Hiring and Firing Number of units made is equal to demand. Previous quarter output =…

Assess plan A: strategy that hires and fires employees to meet the forecasted demand. Assess plan B: strategy that produces 1,200 cases per quarter and meets the forecasted demand with inventory and subcontracting.

Assess plan A: strategy that hires and fires employees to meet the forecasted demand. Assess plan B: strategy that produces 1,200 cases per quarter and meets the forecasted demand with inventory and subcontracting.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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