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Solve the case below and make your recommendation. Would you use level or chase plan, or a mixed method. Would you use outsourcing and contractors, or own personnel only? Zero Inventory Plan ` Precision Transfer, Inc. Produces more than 300 different precision gears ( the aggregation unit is a gear!). ` Last year (=260 working days) Precision made 41.383 gears of various kinds with an average of 40 workers. ` 41.383 gears per year ` 40 x 260 worker-days/year = 3,98 -> 4 gears/ worker-day ` Aggregate demand forecast for precision gear: January February March April May June Total Demand 2760 3320 3970 3540 3180 2900 19.670 Additional data: holding costs: $5 per gear per month backlog costs: $15 per gear per month hiring costs: $450 per worker lay-off costs: $600 per worker wages: $15 per hour ( all workers are paid for 8 hours per day) there are currently 35 workers at Precision currently no inventory. Calculate the example in an excel sheet. What is your recommendation?
