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Homework answers / question archive / Bic is an international company based in France that manufactures and sells disposable consumer products such as lighters, razors and pens around the world

Bic is an international company based in France that manufactures and sells disposable consumer products such as lighters, razors and pens around the world

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Bic is an international company based in France that manufactures and sells disposable consumer products such as lighters, razors and pens around the world. The factory in Spain wants to set an aggregate plan for the next year. The following is the relevant data given by the company: Beginning Workers 60 Regular prod. cost $30/unit Hiring cost $1,000/worker Units/worker 50 Overtime cost $50/unit Firing cost $3,500/worker Overtime capacity 1200 Sub-contracting cost $120/unit Inventory cost $9/unit/month Subcontract capacity 4000 Backordering cost $400/unit Beginning Inv. 600 units Help the company in developing an aggregate plan by selecting one of the following two strategies: a. (35 points) Keeping a steady workforce of 45 workers and use overtime and subcontract as needed, fill the following table: Month Demand Reg. O.T. Subk Inv. W H F Jan 2000 Feb 3000 Mar 3500 Apr 1250 May 3500 Jun 4950
Jul 5450 Aug 7000 Sep 3000 Oct 2000 Nov 1000 Dec 3800 TOTAL a. (5 points) What is the total cost of this plan? Final answer =

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