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Abc Co. is a DVD manufacturer is need of an aggregate plan for July through December. The company has gathered the following data. What will
Abc Co. is a DVD manufacturer is need of an aggregate plan for July through December. The company has gathered the following data. What will each of the two strategies cost? a. Vary the workforce so that production meets demand. b. Vary overtime only and use a workforce of 8. 8 people Demand July 400 August 500 September 550 October 700 November 800 December 700 Costs Holding cost $8 DVD/Month Subcontracting $80/DVD Regular Time Labor $12/hour Overtime Labor $18 (Above 8 hours) Hiring costs $40/worker Layoff costs $80/worker Other data Current workforce (June) Labor hours/DVD Workdays/month Beginning inventory Ending inventory 4 hours 20 days 150 DVDs O DVDs
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