ABC COMPANY uses graphical techniques in its aggregate planning efforts. Over the next 12 months (its intermediate period), it estimates the sum of demands to be 300,000 units. The firm has 300 production days per year. In February, which has 20 production days, demand is estimated to be 20,000 units. A graph of demand versus level production will show that:

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ABC COMPANY uses graphical techniques in its aggregate planning efforts. Over the next 12 months (its intermediate period), it estimates the sum of demands to be
300,000 units. The firm has 300 production days per year. In February, which has 20 production days, demand is estimated to be 20,000 units. A graph of demand versus
level production will show that:
O
O
level production is approximately 900 units per month.
level production of 1000 units per day is above the February requirement.
the firm must hire workers between January and June.
the February requirement is equal level production of 1000 units.
level production is approximately 800 units per day.
Transcribed Image Text:ABC COMPANY uses graphical techniques in its aggregate planning efforts. Over the next 12 months (its intermediate period), it estimates the sum of demands to be 300,000 units. The firm has 300 production days per year. In February, which has 20 production days, demand is estimated to be 20,000 units. A graph of demand versus level production will show that: O O level production is approximately 900 units per month. level production of 1000 units per day is above the February requirement. the firm must hire workers between January and June. the February requirement is equal level production of 1000 units. level production is approximately 800 units per day.
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