Hrm 531 Week 6 Case Analysis

The second production plan is the chase aggregate plan. In this plan, the aggregate production rate is equal to the demand forecast. As you can see in Table 2, we will hire 26 employees and lay off 18 employees during these 8 months. From these results, they indicate a fluctuation in the size of the workforce, ranging from a high of 21 employees to a low of 3 employees. This means the company must have enough space, tools, and equipment for up to 21 employees during 8 months. In addition, the total cost of this plan is $331,800, and the unit cost is $18.64 ($331,800 divided by 17,800 units). For a customer service standpoint, therefore, the chase aggregate plan is in a good position because there is no any back order. However, we must pay