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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
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. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). \begin{tabular}{|c|c|c|c|} \hline & \multirow{2}{*}{\begin{tabular}{c} Avg Dem Per \\ Prod. Day \end{tabular}} & \multicolumn{2}{|c|}{ Other data } \\ \hline \begin{tabular}{l} Demand \\ Forecast \end{tabular} & & \begin{tabular}{l} Inventory carrying cost \\ Subcontracting cost per unit \end{tabular} & \begin{tabular}{l} $8 per unit per month \\ $12 per unit \end{tabular} \\ \hline 900 & & Average pay rate & $5 per hour ( $40 per day) \\ \hline 700 & & Overtime pay Rate & $7 per hour (above 8 hrs \\ \hline 800 & & Labor-hours per unit & \begin{tabular}{l} per day) \\ 1.6 hrs per unit \end{tabular} \\ \hline 1,200 & & Cost of increasing daily & $300 per unit \\ \hline 1,500 & & production rate (hiring & \\ \hline 1,100 & & \begin{tabular}{l} \& training) \\ Cost of decreasing dailv \end{tabular} & $600 ner unit \\ \hline & & production rate (layoffs) & \\ \hline \end{tabular}
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