P8

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Danielle Fashions, a leatherjacket manufacturer, has prepared the following demand forecast. Months 1 2 3 4 5 6 Units 2.800 3.200 4.500 3,800 3,000 3.200 It takes 1.5 hours to make each jacket. The regular cost is $9 an hour, and overtime costs 1.5 times the regular rate. Firing and hiring costs are $700 and S900, respectively, per employee. The inventory cost is $3 per jacket per month,. The current number of employee is 25, and the beginning inventory is 500 jackets. Assume that there are 170 avalaible hours per employee per month. a. Develop an aggregate plan using a chase strategy. Develop another using mixed strategy. b. Compute and compare the production costs