You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua (see Problem 13.7) that you can do a better job at aggregate planning than her current staff. She said, “Fine. You do that, and you have a one-year contract.” You now have to make good on your boast using the data in Problem 13.7. You decide to hire 5 workers in August and 5 more in October. Your results?

Data from Problem 13.7

Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data:

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Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost July 400 Aug. 500 COSTS $8/disk/month $80/disk $12/hour $18/hour for hours above 8 hours/worker/day $40/worker $80/worker DEMAND* Oct. 700 Sept. 550 Current workforce (June) Labor-hours/disk Workdays/month *No costs are incurred for unmet demand, but unmet demand (back- orders) must be handled in the following period. If half or more of a worker is needed, round up. OTHER DATA Nov. 800 Beginning inventory No requirement for ending inventory Dec. 700 8 people 4 hours 20 days 150 disks** O disks