A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the Table The firm would like to begin development of an aggregate plan. MONTH EXPECTED DEMAND PRODUCTION DAYS MONTH EXPECTED DEMAND PRODUCTION DAYS Jan. Feb. MONTH EXPECTED DEMAND PRODUCTION DAYS S2 22 Mar. 900 700 800 1,200 1,500 1,10052 June 22 2 031 Maintain a constant workforce at a level necessary to meet the lowest demand month and to meet all demand above this level by subcontracting. You can't think of hiring employee as a part time. In month of April the Subcontracting cant Produce any item. You must use the overtime plan in this month. Cost Information Inventory carrying cost Inventory carrying cost 75 per unit per month S per unit per Subcontracting cost per unit 28 $ per unit Average pay rate 025 per hour (516 per day) Overtime pay rate 17Sper hour (above 8 hours per day) Labor-hours to produce a unit 2.2 hours per unit Cost of increasing daily production rate (hiring and training) 250 S per unit Cost of decreasing daily production rate (layoffs) 400 $ per unit A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the Table The firm would like to begin development of an aggregate plan. MONTH EXPECTED DEMAND PRODUCTION DAYS MONTH EXPECTED DEMAND PRODUCTION DAYS Jan. Feb. MONTH EXPECTED DEMAND PRODUCTION DAYS S2 22 Mar. 900 700 800 1,200 1,500 1,10052 June 22 2 031 Maintain a constant workforce at a level necessary to meet the lowest demand month and to meet all demand above this level by subcontracting. You can't think of hiring employee as a part time. In month of April the Subcontracting cant Produce any item. You must use the overtime plan in this month. Cost Information Inventory carrying cost Inventory carrying cost 75 per unit per month S per unit per Subcontracting cost per unit 28 $ per unit Average pay rate 025 per hour (516 per day) Overtime pay rate 17Sper hour (above 8 hours per day) Labor-hours to produce a unit 2.2 hours per unit Cost of increasing daily production rate (hiring and training) 250 S per unit Cost of decreasing daily production rate (layoffs) 400 $ per unit