Question: 7. Fairview Industries is preparing its aggregate plan for the second half of the year. The table below contains monthly demand estimates, working days per

7. Fairview Industries is preparing its aggregate plan for the second half of the year. The table below contains monthly demand estimates, working days per month and cost information. Make an aggregate plan for the given time period. Month Expected Demand Production Days July 17000 20 August 22000 23 September 16500 21 October 13500 21 November 11000 20 December 14500 21 Cost Information Inventory carrying cost Subcontracting cost per unit Average pay rate Overtime pay rate Labor hours to produce a unit Cost of increasing daily production rate (hiring and training) Cost of decreasing daily production rate (layoffs) $5 per unit per month $20 per unit $10 per hour ($80 per day) 17 per hour (above 8 hours per day) 1.6 hours per unit 300 per unit 600 per unit

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