A factory manager is preparing his aggregate plan for the next three months. The demand is given in the table below:

Month Expected Demand Available Days Production

Month 1| ED|145 AD| 25 P| 10

Month 2| ED|242 AD| 25 P| 10

Month 3| ED| 363 AD| 25 P| 10

He decided to adopt a level strategy, and planned to manufacture a constant number of 10 products everyday.

The cost information is given in the table below:

Inventory carrying cost - H dollars per unit per month

Average pay rate - $12 per hour ($96 per day)

Labor-hours to produce a unit - T hours per unit

Calculate the total cost of this plan, as given in the table below. Show your work.

	Cost	Calculation
Inventory carrying		(Hint: Calculate the total amount of inventory first!)
Regular-time labor		(Hint: If it takes T hours to make one product, how many workers do we need to make 10products a day?)

H and T values are in the table below:

Assume the company starts the first month with zero inventory at hand!

Data Table

H (in dollars) = 5

T (in hours) = 1.2