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 following 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.
 

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

Answer rating: 100% (QA)

Aggregate planning is the process of developing analyzing and maintaining a preliminary approximate schedule of the overall operations of an organization The aggregate plan generally contains targeted View the full answer