# livingston fabrication has created the following aggregate plan for the next five mo 3610235

Livingston Fabrication has created the following aggregate plan for the next five months August September October November December Forecasted Demand1,500,0001,500,0002,000,000 3,000,000 500,000 (units of finished oods Production Plan 2,000,000 2,000,000 2,000,000 2,000,0002,000,000 Assume that Livingston will have nothing in inventory at the end of July. Livingston employs 1,000 production assembly workers and it takes one production assembly worker 5 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 150 hours of assembly time a month without requiring overtime pay. Please answer the following four questions, based on this information 1. Livingston wants to complete this plan without working any overtime in assembly. Logically, how many additional production assembly workers should Livingston hire to start in August? a) none b) 64 c) 112 d) 145 e) 224 2. What will the ending inventory level during the month of October? a) 0 b) 125,000 c) 250,000 d) 750,000 e1,000,000 3. What will the average inventory level during the month of September? a) 0 b) 125,000 c) 250,000 d) 750,000 e1,000,000 4. If it costs Livingston \$2 to hold one unit of finished good in inventory for one month, what is the total holding cost of this five month plan? a) \$1,000,000 b) \$2,000,000 c) \$4,000,000 d) \$5,000,000 e) \$8,000,000

Show transcribed image text Livingston Fabrication has created the following aggregate plan for the next five months August September October November December Forecasted Demand1,500,0001,500,0002,000,000 3,000,000 500,000 (units of finished oods Production Plan 2,000,000 2,000,000 2,000,000 2,000,0002,000,000 Assume that Livingston will have nothing in inventory at the end of July. Livingston employs 1,000 production assembly workers and it takes one production assembly worker 5 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 150 hours of assembly time a month without requiring overtime pay. Please answer the following four questions, based on this information 1. Livingston wants to complete this plan without working any overtime in assembly. Logically, how many additional production assembly workers should Livingston hire to start in August? a) none b) 64 c) 112 d) 145 e) 224 2. What will the ending inventory level during the month of October? a) 0 b) 125,000 c) 250,000 d) 750,000 e1,000,000 3. What will the average inventory level during the month of September? a) 0 b) 125,000 c) 250,000 d) 750,000 e1,000,000 4. If it costs Livingston \$2 to hold one unit of finished good in inventory for one month, what is the total holding cost of this five month plan? a) \$1,000,000 b) \$2,000,000 c) \$4,000,000 d) \$5,000,000 e) \$8,000,000