a A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for

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A A Juarez Mexico Manufacturer Of Roofing Supplies Has Developed Monthly Forecasts For A Family Of Products Data For 1 (89.14 KiB) Viewed 72 times

a 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 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). Table 1 Month Production Days 22 1 January 2 February 3 March 4 April 5 May 6 June 18 21 21 22 Demand Forecast 900 700 800 1,200 1,500 1,100 Avg Dem Other data Per Prod. Inventory carrying cost $5 per unit per month Day Subcontracting cost per unit $20 per unit 41 Average pay rate $10 per hour ($80 per day) Overtime pay Rate $17 per hour (above 8 hrs per 39 day) 38 Labor-hours per unit 1.6 hrs per unit Cost of increasing daily $300 per unit 57 production rate (hiring & 68 training) 55 Cost of decreasing daily $600 per unit production rate (layoffs) 20 The production rate per day = 30 units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract (Units) Month 1 January 2 February 3 March 4 April 5 May 6 June Demand 900 700 800 1,200 1,500 1,100