2a A manager would like to know the total cost of aggregate production planning approach that matches the forecast below using a steady regular production rate of 200 units per month, a maximum of 20 units per month of overtime, and subcontracting as needed to make up any shortages. Regular cost per unit = $35. Overtime cost per unit = $70. Subcontracting cost per unit = $80. Develop aggregate plan using overtime (Maximum of 20 Units in a Period) & Subcontracting. [7 marks] Month 1 2 3 4 5 6 Forecast 230 200 240 240 250 240

2b Develop an aggregate production plan for a Winnipeg paper producer based on the following information. Define the Total Cost for each plan. [8 marks] Cost and Production Information Regular production cost = $10 per unit Overtime production cost = $15 per unit Subcontracted production cost = $20 per unit Inventory holding cost = $2 per unit per month Backorder cost = $5 per unit per month Hiring cost = $200 per worker hired Termination/Firing cost = $100 per worker terminated Overtime production limit = max of 20 units per month Production rate = 2 units per worker per month Opening inventory level = 10 units Opening workforce level = 30 employees The Demand for each one of the 6 months is defined on the tables below 1) Adopt the Chase Approach. You can use hiring and firing, but not overtime or subcontracted production. What is the total cost of this Aggregate Plan?