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Q.2 Old Pueblo Engineering Contractors creates six-month rolling schedules, which are Re-computed monthly. For competitive reasons (it would need to divulge proprietary design criteria,
Q.2 Old Pueblo Engineering Contractors creates six-month "rolling" schedules, which are Re-computed monthly. For competitive reasons (it would need to divulge proprietary design criteria, methods, and so on). Old Pueblo does not subcontract. Therefore, its only options to meet customer requirements are (1) work on regular time; (2) work on overtime, which is limited to 30 percent of regular time; (3) do customer's work early, which could cost an additional $5 per hour per month; and (4) perform customer's work late, which could cost an additional $10 per hour per month penalty, as provided by the contract. Old Pueblo has 25 engineers on its staff at an hourly rate of $30 and 8 hours daily regular time work. The overtime rate is $45. Customers hourly requirements for the six months from January to June are Demand and working days January February March April May June Totals Demand 5000 Forecast 6000 6000 6000 5000 4000 32000 No of 20 working 20 20 20 20 20 20 120 days Develop an aggregate plan assuming no backordered work at the end of the plan. (10 Marks)
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