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Part 1

A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day.

a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of

6, using subcontracting to meet remaining demand. Evaluate this plan.

Part 2

To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number).

Table 1

	Month	Production Days	Demand Forecast	Avg Dem Per Prod. Day
1	January	22	950	enter your response here
2	February	18	750	enter your response here
3	March	21	750	enter your response here
4	April	21	1,000	enter your response here
5	May	22	1,300	enter your response here
6	June	20	1,050	enter your response here

Other data
Inventory carrying cost	$ 5 per unit per month
Subcontracting cost per unit	$ 10 per unit
Average pay rate	$ 5 per hour ($ 40 per day)
Overtime pay Rate	$ 7 per hour (above 8 hrs per day)
Labor-hours per unit	1.6 hrs per unit
Cost of increasing daily production rate (hiring & training)	$ 300 per unit
Cost of decreasing daily production rate (layoffs)	$ 600 per unit

Part 3

The production rate per day

=

enter your response here

units. (Enter your response as a whole number.)

Part 4

Fill in the table below. (Enter your responses as whole numbers.)

	Month	Demand	Regular Production	Subcontract (Units)
1	January	950	enter your response here	enter your response here
2	February	750	enter your response here	enter your response here
3	March	750	enter your response here	enter your response here
4	April	1,000	enter your response here	enter your response here
5	May	1,300	enter your response here	enter your response here

Part 5

The total regular production cost

=$

enter your response here

. (Enter your response as a whole number.)

Part 6

The total subcontracting cost

=$

enter your response here

. (Enter your response as a whole number.)

Part 7

Total cost with plan 5 = $

enter your response here

. (Enter your response as a whole number.)

Part 8

b) Juarez has yet a sixth plan. A constant workforce of

7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan.

Part 9

The production rate per day

=

enter your response here

units. (Enter your response as a whole number.)

Part 10

Fill in the table below. (Enter your responses as whole numbers.)

Part 11

The total regular production cost

=$

enter your response here

. (Enter your response as a whole number.)

Part 12

The total subcontracting cost

=$

enter your response here

. (Enter your response as a whole number.)

Part 13

Total cost with plan 6

=$

enter your response here

. (Enter your response as a whole number.)

production per day. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). The production rate per day = units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) The total regular production cost =$. (Enter your response as a whole number.) The total subcontracting cost =$. (Enter your response as a whole number.) Total cost with plan 5=$ (Enter your response as a whole number.) b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan. The production rate per day = units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) The total regular production cost =$. (Enter your response as a whole number.) The total subcontracting cost =$. (Enter your response as a whole number.) Total cost with plan 6=$ (Enter your response as a whole number.)