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.

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, 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	22	950	_______
2	February	18	750	________
3	March	21	750	_______
4	April	21	1,000	_______
5	May	22	1,300	_______
6	June	20	1,050	_______

Other data
Inventory carrying cost	$8 per unit per month
Subcontracting cost per unit	$12 per unit
Average pay rate	$5 per hour ($40 per day)
Overtime pay Rate	$7 per hour (above 8 hrs per day)
Labor-hours per unit	1.6 hrs per unit
Cost of increasing daily production rate (hiring & training)	$300 per unit
Cost of decreasing daily production rate (layoffs)	$600 per unit

The production rate per day = _____ units. (Enter your response as a whole number.)

Fill in the table below. (Enter your responses as whole numbers.)

	Month	Demand	Regular Production	Subcontract (Units)
1	January	950	_______	______
2	February	750	________	______
3	March	750	________	______
4	April	1,000	_______	_______
5	May	1,300	______	_______
6	June	1,050	______	_______

The total regular production cost= $ ______ (Enter your response as a whole number.)

The total subcontracting cost = $ ______ (Enter your response as a whole number.)

Total cost with plan 5 = $ ______ (Enter your response as a whole number.)

b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan.The production rate per day = ______ units. (Enter your response as a whole number.)

Fill in the table below. (Enter your responses as whole numbers.)

	Month	Demand	Regular Production	Subcontract (Units)
1	January	950	_________	________
2	February	750	_________	________
3	March	750	_________	________
4	April	1,000	_________	__________
5	May	1,300	__________	_________
6	June	1,050	__________	_________

The total regular production cost = $ ______ (Enter your response as a whole number.)

The total subcontracting cost = $ _______ (Enter your response as a whole number.)

Total cost with plan 6 = $ _______ (Enter your response as a whole number.)