Chapter 6: In-class assignment Aggregate Planning Examples (used for both level and chase strategy examples in upcoming pages) Formulas Production hours per worker production hours per day*days in month Units per worker production hours per worker/ labor hours required Cost per worker days in month *hours paid labor rate Problem Information Demand/month Jan Feb Mar 4,5007,500 10,500 11,000 8,0005,000 Apr May Jun $5/unit $1/unit per mo. based on ending inv Materials Holding costs Marginal cost of backorder$1.25/unit per mo Hiring and training cost Layoff costs Labor hours required- -$8/hour 250 units Straight time labor cost Beginning inventory Productive hours/worke/day Paid straight hrs/day- Working da 7.25 $200/worker $250/worker 15 hrs/unit er month- 20