question archive A local company makes athletic clothing and they are preparing aggregate production plans on a quarterly basis for the coming year for their line of women's wear
A local company makes athletic clothing and they are preparing aggregate production plans on a quarterly basis for the coming year for their line of women's wear
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A local company makes athletic clothing and they are preparing aggregate production plans on a quarterly basis for the coming year for their line of women's wear. They have the following information available to develop a level capacity and a matching (chase) demand plan: (Assume that pattern of demand repeats each year, that is the demand in quarter 4 of the previous year was 13,000 units) Number of working days per quarter = 65 days Number of hours per day per person = 8 hours Labor to produce one unit = 5 hours Demand for four quarters respectively: 12,300, 12,500, 12,200, 13,000 units
What is the total cost to hire workers under a matching (chase) strategy?
a. $4,500
b. $4,800
c. $6,400
d. $7,200
e. $14,400
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What is the total cost to hire workers under a matching (chase) strategy?
The correct option is d. $7,200.
Reason:
| Quarter | Demand | Unit/Person | Required Worker | Hired Worker |
| 1 | 12300 | 104 | 119 | 0 |
| 2 | 12500 | 104 | 121 | 2 |
| 3 | 12200 | 104 | 118 | 0 |
| 4 | 1300 | 104 | 125 | 7 |
| 9 |
The total worker needs to be hired is 9. Therefore, the cost of hiring the worker is:
Note: The cost of hiring is assumed to be $800.
