Refer to Example 3. Suppose that the new union contract limits the number of temporary workers working in any month to 28 (i.e., 20 percent of number of permanent workers). Recall from Example 2 that up to 400 units can be produced during overtime per month. Using trade-off analysis and trial-and-error, find the minimum cost aggregate production plan in this case.
Example 3.

Transcribed Image Text:

Month Total 2,000 2,000 3,000 4,000 2,000 18,000 16,800 1,200 2,800 2,8C0 2,800 2,800 2,8c0 2,800 Temporary Overtime Output Forecast -600-1,600 1,800 1,000 -200 800 Inventory Beginning 1,000 1,800 2,600 2,200 2,600 2,400 2,500 ,800 2,100 200 1,000 1,400 9,800 Regular (ar $100/unit) Temporary lat $100/unit) Overtime (at $150/unir Hire temporcry (at $25/unir $280,000 280,000 280,000 280,000 280,000 280,000 $1,680,000 $120,000 60,000 60,c0 15,000 $15,000 $98,000 Inventory (at $10/unit/month] Backorder (at $150/unit/month) $14,00 22,00 25,000 21,000 10,000 6,000 $294,000 302,000 305,000 37,000 350,000 ,000 $,913,000