Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a demand forecast for the following year, as shown below. The company begins with 1,400,000 jeans in safety stock and desires to maintain this level consistently (and end with this level), assume that the overtime production wage rate is $36 per hour. Quarter Demand 1 9,000,000 2 9,300,000 3 15,000,000 4 13,500,000 Current workforce 300 workers Average output per worker 30,000 jeans per quarter Inventory holding cost $ 0.50 pair per quarter Regular wage rate $ 24 per hour Regular production hours 500 hours per quarter Hiring cost $ 430 per worker Firing/layoff cost $ 340 per worker Beginning inventory $ 1,400,000 a. Develop a chase plan using a stable workforce of 300 workers. (Leave no cells blank – be certain to enter “0” wherever required.) b. Compute the cost of a chase plan using a stable workforce of 300 workers.

Neal Industries manufactures blue jeans for the teen market. The S&OP team has agreed upon a demand forecast for the following year, as shown below. The company begins with 1,400,000 jeans in safety stock and desires to maintain this level consistently (and end with this level), assume that the overtime production wage rate is $36 per hour.

Quarter Demand
1 9,000,000
2 9,300,000
3 15,000,000
4 13,500,000

Current workforce 300 workers
Average output per worker 30,000 jeans per quarter
Inventory holding cost $ 0.50 pair per quarter
Regular wage rate $ 24 per hour
Regular production hours 500 hours per quarter
Hiring cost $ 430 per worker
Firing/layoff cost $ 340 per worker
Beginning inventory $ 1,400,000

a. Develop