DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are 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 The forecast for next year is JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC.

2,500 3,000 4,000 3,500 3,500 3,000 3,000 4,000 4,000 4,000 3,000 3,000 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 following month.

Develop an aggregate plan that will meet the demand and other conditions of the problem.

Do not try to fi nd the optimum; just fi nd a good solution and state the procedure you might use to test for a better solution. Make any necessary assumptions.