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A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6month period January to June are

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A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6month 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 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, rst calculate demand per day for each month {enter your responses rounded to the nearest whole number). Table 1 Avg Dem Per Other data Production Demand Prod. Day Inventory carrying cost $8 per unit per month Month Days Forecast Subcontracting cost per unit $12 per unit 1 January 22 950 El Average pay rate $5 per hour ($40 per day) 2 February 18 750 D Overtime pay Rate 32356!- hour (above 8 hrs per 3 March 21 750 El Labor-hours per unit 1.6 hrs per unit 4 April 21 1,000 B Cost of increasing daily $300 per unit 5 May 22 1,300 El production rate (hIrIng & training) 6 June 20 1.050 D Cost of decreasing daily $600 per unit production rate (layoffs)

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