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Immediate response within 45 minutes !!! Page Heating Inc, constructs ar conditioning and heating systems for hospitals. The expected demand and production days for the

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Immediate response within 45 minutes !!!

Page Heating Inc, constructs ar conditioning and heating systems for hospitals. The expected demand and production days for the next 6 months are as follows. Expected demand Production Demand/ days day month 1000 120 50 jan Teb 1000 20 50 mar 700 20 35 apr 500 20 30 may 20 40 800 900 jur 20 45 Cost and other required information for the company is given in the following Table. Inventory carrying cost Subcontracting cost per unit $5 per unil per month $30 per unit Average pay rale Overtime pay rate $10 per hour (S80 per day) $15 per hour (above 3 hours per day) 4 hours per unit tabor-hours to produce a unil Cost of increasing daily production rate (hiring and training) Cost of decreasing daily production rate (layolls) $300 per unit per month $600 per unil per month Develop an aggregale production plan matching the workforce lo lhe production requirementie a chose strategy and compute the total cost of this plan Assume that the firm starts with zero inventory and exact number of workers required for January production. Every worker works for 8 hours per day in regular time. Write (zero) if no ending inventory or hiring/liring exosts for that month. Write the big numbers without commes en 2300 Month Demand Daily production rate Monthly productioning increase in daty prod rate) Frog (decrease in daily prod rate) Wan 1000 0 0 Feb 11000 Mar 700 Apr 600 May 900 Uun 900 Total cost regular lobor cost hiring cost firing cost 20 days $10/hr Ahrs/unit $300/unit 5600/unit Does subcontracting increase or decrease costs

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