exhibit 1

Level production to meet peak demand

month

december

production plan
shipment forecast
production plan
shipments
inventory
extraordinary labor cost
number of workers
hirings
layoffs
workers month overtime
cost of alternative 1
hirings cost
layoffs cost
inventory holding cost
labor cost
regular
overtime

january

february

march

4400
8440
4400

4400
8440
4400

6000
8440
6000

240

4280

8320

10760

160

211
51
0
0

211
0
0
0

211
0
0
0

cost
quantity total
$
1,800
51 $
91,800
$
1,200
0 $
$
8
75000 $ 600,000
$
$

2,400
3,300

2532 $ 6,076,800
0 $
$ 6,768,600

april

may

june

july

august

septemberoctober

november

8000
8440
8000

6600
8440
6600

11800
8440
11800

13000
8440
13000

11200
8440
11200

10800
8440
10800

7600
8440
7600

6000
8440
6000

11200

13040

9680

5120

2360

840

3280

211
0
0
0

211
0
0
0

211
0
0
0

211
0
0
0

211
0
0
0

211
0
0
0

211
0
0
0

211
0
0
0

december totals

5600
8440
5600

95400
101280
95400

6120

75000

211
0
0
0

2532
51
0
0

exhibit 2
Chase production plan with constant workforce and overtime
month

december

production plan
shipment forecast
production plan
shipments
inventory
extraordinary labor cost
number of workers
hirings
layoffs
workers month overtime
cost of alternative 1
hirings cost
layoffs cost
inventory holding cost
labor cost
regular
overtime

january

february

march

4400
4160
4400

4400
4400
4400

6000
6000
6000

240

160

199
39
0
0

199
0
0
0

199
0
0
0

cost
quantity total
$
1,800
39 $
70,200
$
1,200
0 $
$
8
0 $
$
$

2,400
3,300

2388 $ 5,731,200
375 $ 1,237,500
$ 7,038,900

april

may

june

july

august

septemberoctober

november

8000
8000
8000

6600
6600
6600

11800
11800
11800

13000
13000
13000

11200
11200
11200

10800
10800
10800

7600
7600
7600

6000
6000
6000

199
0
0
1

199
0
0
0

199
0
0
96

199
0
0
126

199
0
0
81

199
0
0
71

199
0
0
0

199
0
0
0

7960

december totals

5600
5600
5600

95400
95160
95400

199
0
0
0

2388
39
0
375

exhibit 3
Chase production plan with varying workforce
month

december

production plan
shipment forecast
production plan
shipments
inventory
extraordinary labor cost
number of workers
hirings
layoffs
workers month overtime
cost of alternative 1
hirings cost
layoffs cost
inventory holding cost
labor cost
regular
overtime

january

february

march

4400
4160
4400

4400
4400
4400

6000
6000
6000

240

160

104
0
56
0

110
6
0
0

150
40
0
0

cost
quantity total
$
1,800
256 $ 460,800
$
1,200
276 $ 331,200
$
8
0 $
$
$

2,400
3,300

2379 $ 5,709,600
0 $
$ 6,501,600

april

may

june

july

august

septemberoctober

november

8000
8000
8000

6600
6600
6600

11800
11800
11800

13000
13000
13000

11200
11200
11200

10800
10800
10800

7600
7600
7600

6000
6000
6000

200
50
0
0

165
0
35
0

295
130
0
0

325
30
0
0

280
0
45
0

270
0
10
0

190
0
80
0

150
0
40
0

december totals

5600
5600
5600

95400
95160
95400

140
0
10
0

2379
256
276
0

exhibit 4
Aggregate plan for macpherson refrigeration limited
month

december

production plan
shipment forecast
production plan
shipments
inventory
extraordinary labor cost
number of workers
hirings
layoffs
workers month overtime
cost of alternative 1
hirings cost
layoffs cost
inventory holding cost
labor cost
regular
overtime

january

february

march

4400
8000
4400

4400
8000
4400

6000
8000
6000

240

3840

7440

9440

160

200
40
0
0

200
0
0
0

200
0
0
0

cost
quantity total
$
1,800
139 $
250,200
$
1,200
0 $
$
8
11680 $
93,440
$
$

2,400
3,300

2528 $ 6,067,200
0 $
$ 6,410,840

inventory
no problem because low cost
overtime
allow, but in a little because lead to inefficiency
hiring/layoff not allow, because it is complicated

april

may

june

july

august

8000
8000
8000

6600
8000
6600

11800
8000
11800

13000
8000
13000

11200
9160
11200

9440

10840

7040

2040

200
0
0
0

200
0
0
0

200
0
0
0

200
29
0
0

229
70
0
0

assumption
there's no overtime, and layoff
hiring 40 worker in the beginning
all the production plan is in the maximal capacity (constant)
remain inventory is no problem

result
the production plan excees the shipment or forecast
create a big inventory in the ending
there's no cost for overtime and layoff
e lead to inefficiencycost for hiring only in the beginning, for 40 worker only
compare
exhibit 1
exhibit 2
exhibit 3
Linda

total production plan total cost

total inventory
101280 $
6,768,600
75000
95160 $
7,038,900
0
95160 $
6,501,600
0
96000 $
6,211,200
47400

september

october

november december totals

10800
11960
10800

7600
8000
7600

6000
8000
6000

5600
8000
5600

95400
101120
95400

1160

1560

3560

5960

11680

299
0
0
0

200
0
0
0

200
0
0
0

200
0
0
0

2528
139
0
0

total overtime
0
375
0
0

largest production, larger inventory, and quite expensive

smaller production, many overtime, and the most expensive
smaller production, no inventory, no overtime, and quite expensive
larger production, large inventory, no overtime

e expensive
efficiency, but create the largest inventory, and the cost is more expensive
most expensive
not efficiency because of overtime
e, and quite expensive efficiency but still more expensive
efficiency, although create a large inventory, but still create the cheapest cost

eapest cost