DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are Production time 1 hour per unit Beginning inventory 500 units Average labor cost $10 per hour Safety stock One-half month Workweek 5 days, 8 hours Shortage cost $20 per unit per each day month Days per month Assume 20 work Carrying cost $5 per unit per days per month month The forecast for next year is JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC.

2,500 3,000 4,000 3,500 3,500 3,000 3,000 4,000 4,000 4,000 3,000 3,000 Management prefers to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the following month.

Develop an aggregate plan that will meet the demand and other conditions of the problem. Do not try to find the optimum; just find a good solution and state the procedure you might use to test for a better solution. Make any necessary assumptions.