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SAR, Inc. needs to develop an aggregate plan for its product line. Relevant data are Production time: 0.5 units per hour Average labor cost: $8/hour

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SAR, Inc. needs to develop an aggregate plan for its product line. Relevant data are Production time: 0.5 units per hour Average labor cost: $8/hour Workweek: 5 days, 8 hours per day Days per month: Assume the year 2018 Hiring cost: $200/worker Layoff cost: $300/worker Beginning inventory: 500 units Safety stock: None Shortage cost: $16 per unit per month Inventory cost: $4 per unit per month Outsourced cost: $13/unit SAR Inc. currently employs 15 workers. The forecast for the next 6 months is: Jan Feb. Mar. Apr. May June 2500 3200 3800 3400 3500 2900 Perform aggregate planning for stable strategy with outsourcing. Production requirement Working days per month Monthly production hours Monthly production level Monthly outsourcing level Monthly outsourcing cost Monthly labor cost SAR, Inc. needs to develop an aggregate plan for its product line. Relevant data are Production time: 0.5 units per hour Average labor cost: $8/hour Workweek: 5 days, 8 hours per day Days per month: Assume the year 2018 Hiring cost: $200/worker Layoff cost: $300/worker Beginning inventory: 500 units Safety stock: None Shortage cost: $16 per unit per month Inventory cost: $4 per unit per month Outsourced cost: $13/unit SAR Inc. currently employs 15 workers. The forecast for the next 6 months is: Jan Feb. Mar. Apr. May June 2500 3200 3800 3400 3500 2900 Perform aggregate planning for stable strategy with outsourcing. Production requirement Working days per month Monthly production hours Monthly production level Monthly outsourcing level Monthly outsourcing cost Monthly labor cost

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