Helter Industries, a company that produces a line of women’s bathing suits, hires temporaries to help produce its summer product demand.

For the current four-month rolling schedule, there are three temps on staff and 12 full-time employees. The temps can be hired when needed and can be used as needed, whereas the full-time employees must be paid whether they are needed or not. Each full-time employee can produce 205 suits, while each temporary employee can produce 165 suits per month.

Demand for bathing suits for the next four months is as follows:

May June July August 3,200 2,800 3,100 3,000 Beginning inventory in May is 403 bathing suits. Bathing suits cost

$40 to produce and carrying cost is 24 percent per year.

Develop an aggregate plan that uses the 12 full-time employees each month and a minimum number of temporary employees.

Assume that all employees will produce at their full potential each month. Calculate the inventory carrying cost associated with your plan using planned end-of-month levels.

LO19-3 W101