6 DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are

The forecast for next year is

Management prefers to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the fol- lowing month. Develop an aggregate plan that will meet the demand and other conditions of the problem. Do not try to find the optimum; just find a good solution and state the procedure you might use to test for a better solution. Make any necessary assumptions.

Production time Average labor cost Workweek Days per month 1 hour per unit $10 per hour 5 days, 8 hours each day Assume 20 work days per month Beginning inventory Safety stock Shortage cost Carrying cost 500 units One-half month $20 per unit per month $5 per unit per month