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Question 1: Michael Carrigg Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the
Question 1: Michael Carrigg Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data Costs $8/disk drive/Month $80/disk drive holding costs Subcontracting regular-time labor overtime labor S15 $20/hour (above 8 hours) S50/worker hiring cost layoff cost $80/worker Demand July 420 August 660 September 560 October 700 November 800 December 700 *No costs are incurred for unmet demand 4 hours Other data current workforce (June) 8 people Labor-hours/disk drive workdays/month 20 days beginning inventory 150 disk drives** ending inventory O disk drives **note that there is no holding cost for June What will each of the following strategies cost? a) Vary the workforce so that production meets demand. Carrigg had eight workers on board in June. b) Vary the overtime only and use a constant workforce of eight. c) Follow a level strategy that produces 420 disk drives per month and meets the forecasted demand with inventory and subcontracting
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