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This product is assembled in an assembly plant, including 3 0 workers. Each month includes 2 2 working days, and the regular daily working hours
This product is assembled in an assembly plant, including workers. Each month includes
working days, and the regular daily working hours are hours. Each worker is paid $ per hour
in regular working times, and $ per hour for overtime. The time required to assemble each unit
of product is laborhour. To satisfy the demand for the coming year, the production manager
needs an aggregate plan. Since there is a surge in demand from the seventh month July the
manager has decided to split the planning horizon into two periods of six months.
For the first six months, from January to July, the decision is to adjust hire or fire the number of
workers in a way to produce the average demand over this period internally and, for those periods
where the internal production is not sufficient to cover demand, the quantity needed will be
outsourced with a price of $ per unit.
For the second six months, from July to the end of December, the decision is to adjust hire or fire
the number of workers in a way to produce the average demand over this period internally and, if
there is a period where the internal production is not sufficient, the quantity needed will be done in
overtime.
There is no inventory in the beginning, and no inventory must be left at the end of the planning
horizon.
Unit inventory holding cost is $ per month. Also, hiring and firing costs are $ and $ per
worker, respectively.
Develop the aggregate plan and calculate the total cost of the plan
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