Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters....

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.

Quarter	Demand	Previous quarter's output	800 units
1	700	Beginning inventory	0 units
2	900	Stockout cost	$100 per unit
3	1200	Inventory holding cost	$10 per unit at end of quarter
4	600	Hiring workers	$20 per unit
		Laying off workers	$40 per unit
		Subcontracting cost	$200 per unit
		Unit cost	$100 per unit

Which of the following production plans is better: Plan A–chase demand by hiring and layoffs; Plan B–pure level strategy, or Plan C–700 level with the remainder by subcontracting (Show your explanation and calculation to earn full credit)?

Expert Solution

keosha answered 1 year ago

ABC Manufacturing has the following Aggregate Plan demand requirements and other data for the upcoming four...

ABC Manufacturing has the following Aggregate Plan demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1300 Beginning inventory 200 units 2 1400 Stockout cost $50 per unit 3 1500 Inventory holding cost $10 per unit at end of quarter 4 1300 Hiring workers $4 per unit Laying off workers $8 per unit Unit cost $30 per unit Overtime $10 extra per unit By utilizing the aggregate planning excel sheet, answer...

Dade Industries makes syringes. The demand for the next four quarters and the cost data are...

Dade Industries makes syringes. The demand for the next four quarters and the cost data are given below. Each employee can produce 100 syringes per quarter. Because of union contract no overtime is permissible. The current work force is 18 workers. Quarter 1 2 3 4 Demand 1500 2000 1800 2500 Hiring costs = $1000/ worker; Layoff costs = $ 700/worker; Regular time wages = $10000/worker/quarter; Inventory holding costs = $2.00/unit/quarter For a level strategy in this manufacturing example: Which...

The following data are results from a studying the effects of using four quarters or a...

The following data are results from a studying the effects of using four quarters or a $1 bill on keeping the money or spending it. 43 students were given the denominations. Purchased Gum Kept the Money Total Given Four Quarters 27 16 Given a $1 Bill 12 34 Total 43 (a) What are the two row totals? (b) What are the two column totals? (c) Find the probability (as a fraction and a decimal rounded to three places) of randomly...

Aggregate Demand and Aggregate Supply Assume Broncoland has the following aggregate demand (AD) and short-run aggregate...

Aggregate Demand and Aggregate Supply Assume Broncoland has the following aggregate demand (AD) and short-run aggregate supply (SRAS) schedules. Price Level Aggregate Demand Short-Run Aggregate Supply 120 8250 9700 115 8300 9750 110 8400 9700 105 8500 9600 100 8600 9500 95 8700 9300 90 8800 8800 85 8900 8000 80 9100 7000 Return to the original values of aggregate demand and short-run aggregate supply. Assume the long-run full-employment level of output (often called either potential GDP or the natural...

Beasley Company prepared a cash budget by quarters for the upcoming year. Missing data amounts are...

Beasley Company prepared a cash budget by quarters for the upcoming year. Missing data amounts are indicated with question marks or lower case letters; these lower case letters will be referred to in the questions that follow. Beasley requires a minimum balance of $10,000 to start a quarter. All data are in thousands. Beasley Corporation Cash Budget QTR 1 QTR 2 QTR 3 QTR 4 Cash balance, beginning $16 $ e $13 $10 Add collections from customers a 70 67...

For the following four cases, trace the impact of each shock in the aggregate demand and...

For the following four cases, trace the impact of each shock in the aggregate demand and aggregate supply model by answering the following three questions for each: i. What happens to prices and output in the short run? ii. What happens to prices and output in the long run if the economy is allowed to adjust to long-run equilibrium on its own? iii. If policy makers had intervened to move output back to the natural rate instead of allowing the economy to...

Suppose you are given the following macroeconomics data (in million): Aggregate Demand: ?? = ? +...

Suppose you are given the following macroeconomics data (in million): Aggregate Demand: ?? = ? + ? + ? + ?? Short-run Aggregate Supply (SRAS): ? = 16,000 + 7,000? Long-run Aggregate Supply (LRAS): ??? = $74,000 Where,  ??? is real GDP at full employment or the natural rate of unemployment.  ? is the aggregate price level.  Consumption spending: ? = ??, ??? + ?. ??? − ????  I = $4,400 G = $2,000 T =...

Suppose you are given the following macroeconomics data (in million): Aggregate Demand:

Suppose you are given the following macroeconomics data (in million): Aggregate Demand: AD=C+I+G+NX Short-run Aggregate Supply (SRAS): Y=16,000+7,000P Long-run Aggregate Supply (LRAS): YFE=$74,000 Where, YFE is real GDP at full employment or the natural rate of unemployment. P is the aggregate price level. Consumption spending: C=10,000+0.8YD-200P I = $4,400 G = $2,000 T = $2,000 NX = $1,200 1. Find the equation for the AD curve for this economy. 2. Find the short-run equilibrium level of real GDP (YSR)...

Aggregate Demand/Aggregate Supply Reference an article about an economy (US or other) that suggests a shift...

Aggregate Demand/Aggregate Supply Reference an article about an economy (US or other) that suggests a shift is occurring in Aggregate Demand or Aggregate Supply. Describe the nature and the causes of that shift and what the result of the shift is?

GIVE A RESPONSE T THIS: There are four components (variables) of aggregate demand, but in...

GIVE A RESPONSE T THIS: There are four components (variables) of aggregate demand, but in my opinion investment is the most important component in improving GDP growth. Investment is deemed as the expenditure on capital goods – for example, new machines, offices, new technology. Investment is the second of the four components of aggregate demand, it is the spending by firms on capital, not households. However, it is said that investment is also the most volatile component of AD....

Question