A manager has prepared a forecast of expected aggregate demand for the next six months.

Develop an aggregate plan to meet this demand given this additional information:

-A level workforce of 10 workers will be used. Each worker has a regular time output of 20 units per month

-Back orders are allowed at a cost of $3/unit/month

-Inventory carrying costs are $1/unit/month on average inventory. Beginning inventory is 10 units

-Regular time output costs $4/unit

Month forecast

1. 50

2. 100

3. 250

4. 400

5. 250

6. 150