Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop

Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as follows:

Quarter

Forecast

1 1,400

2 1,200

3 1,500

4 1,300

· Previous quarter output = 1,500 units

· Beginning inventory = 0 units

· Stock out cost = $50 per unit

· Inventory holding cost = $10 per unit for every unit held at the end of the quarter

· Hiring workers = $ 40 per unit

· Layoff workers= $80 per unit

· Unit cost = $30 per unit

· Overtime = $ 15 extra per unit

· Subcontracting = not available

Your job is to develop an aggregate plan for the next four quarters.

a) First, try a chase plan by hiring and layoffs (to meet the forecast) as necessary.

Then try a plan that holds employment steady.

c) Which is the more economical plan for Deb Bishop Health and Beauty Products?

Get help with your complex tasks from our writing experts

When you have no idea what to do with your written assignments, use a reliable paper writing service. Now you don’t need to worry about the deadlines, grades, or absence of ideas. Place an order on our site to get original papers for a low price.

Order Now