Aggregate Planning Quiz

1
Aggregate Planning Quiz
Expected demand over the next 6 quarters
2

• Assume a level strategy and a beginning inventory
  of 700 units. Complete an inventory balance
  table.
• Management has a policy that the inventory at the
  end of each quarter is to be at least 200 units.
  Using the plan from 1, what beginning (quarter
  1) inventory would be necessary to satisfy this
  policy?
• Each worker produces 100 units per quarter. Using
  a level w/ot strategy, how many workers are
  needed if each worker works 25 OT in two of six
  quarters?
• A unit produced on regular time costs 200 and OT
  is at a 1.5 premium. What is the production cost
  (regular overtime) for the scenario described
  in 3?