Tameka has decided that the BackPack Company must have very good customer service. She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. You must:
a) Calculate the aggregate production rate.

b) Calculate the appropriate workforce given the aggregate production rate.

c) Show what would happen if this plan were implemented.

d) Calculate the costs of this plan.

e) Evaluate the plan in terms of cost, customer service, operations, and human resources

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Problem Data Cost data Regular-time labor cost per hour Overtime time labor cost per hour Subcontracting cost per unit (labor only) Holding cost per unit per period Back-order cost per unit per period Hiring cost per employee Firing cost per employee Capacity data Beginning workforce Beginning inventory $12.00 $16.00 $75.00 $8.00 $15.00 $500.00 $350.00 210 400