Forecasted its production requirements for next four month

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Reference no: EM13962165

1. Harry Corporation has forecasted its production requirements for the next four months: Month Productive Days Available Customer Demand (units) June 21 25,000 July 22 16,000 August 11 18,000 September 21 14,000 currently, there are 100 employees with normal productivity of 12 units daily per employee. Harry Corporation can put its output into inventory, but Harry Corporation currently has no inventory on hand. Harry Corporation plans to utilize all productive days available over these next four months- that is, all employees will be working at their normal productive rate for all productive days available. Following Harry Corporation’s production plan, how many units will be produced in August?

a. 26,400

b. 5,800

c. 25,200

d. 18,000

e. 13,200

2. Which of the following is (are) true statements?

I. One capacity option in aggregate planning for a service system is overtime.

II. A “chase” aggregate plan attempts to match productive capacity with demand.

III. A disadvantage of the “chase” aggregate planning approach is that a substantial amount of inventory is usually required.

Reference no: EM13962165

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