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1. Gemilang Enterprise produces product ZZ. The company is preparing an aggregate planning for next six months from January to June as shown in
1. Gemilang Enterprise produces product ZZ. The company is preparing an aggregate planning for next six months from January to June as shown in Table Q1a. Using information given in Table Q1b, prepare an aggregate planning using constant workforce of 12 workers. Any excess will be stored as inventory and shortage will be supported by subcontractor. The customers are not accepted any backlog Table Q1a Jan Feb Mac Apr May Jun Demand 500 600 650 800 900 800 Working day 22 19 21 21 22 20 Table Q1b Material cost Inventory holding cost (average) Subcontrating cost Labour hour Regular labour cost Overtime cost Working hour Beginning inventory $100/unit $10/unit/month $200/unit 4 hours/unit $12.50/hour $18.75/hour 8 hours/day 200 units
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