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 below. There are 8 hours of production per day.

This exercise only contains part a.

a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of

66,

using subcontracting to meet remaining demand. Evaluate this plan.

To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number).

Table 1

	Month	Production Days	Demand Forecast	Avg Dem Per Prod. Day
1	January	2222	900900	nothing
2	February	1818	700700	nothing
3	March	2121	800800	nothing
4	April	2121	1 comma 2001,200	nothing
5	May	2222	1 comma 5001,500	nothing
6	June	2020	1 comma 1001,100	nothing

Other data
Inventory carrying cost	$55 per unit per month
Subcontracting cost per unit	$1010 per unit
Average pay rate	$55 per hour ($4040 per day)
Overtime pay Rate	$77 per hour (above 8 hrs perday)
Labor-hours per unit	1.61.6 hrs per unit
Cost of increasing daily production rate (hiring &training)	$300300 per unit
Cost of decreasing daily production rate (layoffs)	$600600 per unit