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Problem #1: Consider the following Aggregate Planning problem. Demand forecast Cost data Wage/hour $15.00 Month Demand S22.50 4200 OT pay rate/Hour 4400 $75 Subcontracting rate/unit
Problem #1: Consider the following Aggregate Planning problem. Demand forecast Cost data Wage/hour $15.00 Month Demand S22.50 4200 OT pay rate/Hour 4400 $75 Subcontracting rate/unit 4800 $7.00 Carrying cost 5100 $500 Hiring cost/worker $650 5000 Firing cost/worker 5500 6000 5900 Other data Initial condition Std. hours 2.5 Workers on roll 70 Hours/day Current inventory 300 Days/Month Safety stock 250 30% OT Limit Note: Hiring/fining costs are based on number of workers, not daily production rate from one month to the next
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