Tameka wants you to consider a hybrid aggregate plan, using up to the maximum overtime per employee for any period where demand cannot be satisfied with the current regular-time production and the available inventory. Back orders can occur.

a) Show what would happen if this plan were implemented.

b) Calculate the costs associated with this plan.

c) Evaluate the plan in terms of cost, customer service, operations, and human resources.

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Problem Data Cost data Regular-time labor cost per hour Overtime time labor cost per hour Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per unit per period Hiring cost per employee Firing cost per employee Capacity data Beginning workforce Beginning inventory $12.00 $16.00 $75.00 $8.00 $15.00 $500.00 $350.00 210 400