Dolce, a Cuban sugarcane manufacturing plant, wants to forecast the production demand of 50 kilograms sacs of sugar for the next 4 months. They have noticed that in December, the demand was only 10,100 sacks of sugar due to bad economy. They also want to develop an aggregate plan using overtime strategy with zero back-orders. The production are the following:

1 wroker assembles 15 sacs of sugar a day,

Worker earns $200 per month

Assume each month has 20 working days

Overtime production = 7 units/worker/day

Overtime production per unit = $10

Carrying Cost/unit = $20

There are 40 workers.

Initial Inventory: 500 units

Actual Demand Data:

D Period Month Month (units) 1 Jan 12,200 2 Feb 13,400 3 Mar 12,600 4 April 12,900 5 May 12,800 6 June 12,700 7 13,800 8 Aug 12,900 9 Sept 12,800 10 Oct 11,000 11 Nov 13,700 12 Dec 10,100 July D Period Month Month (units) 1 Jan 12,200 2 Feb 13,400 3 Mar 12,600 4 April 12,900 5 May 12,800 6 June 12,700 7 13,800 8 Aug 12,900 9 Sept 12,800 10 Oct 11,000 11 Nov 13,700 12 Dec 10,100 July