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
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 $5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 per hour ($80 per day) Overtime pay rate 17 per hour (above 8 hours per day) Labor hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring 300 per unit and training) Cost of decreasing daily production rate (layoffs) per 600 unit

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