A manager has put together an aggregate plan for the coming six months. He has obtained a forecast of expected demand for the planning horizon. The following data and information consist of the aggregate plan.

Period	Jan	Feb	March	April	May	June
Forecast	300	320	320	340	320	320

The regular output each month is 300 units. Overtime output each month is 20 units.

Costs are as follows: Regular output = $40, Overtime = $50, Subcontract = $60. Average Balance Inventory = $10 Beginning inventory for January is zero. Your job as management is to determine if the current workforce (which includes both the regular and overtime output) will be able to satisfy the forecast demand (for the full 6 month period). Furthermore, your job is to determine the total cost of this aggregate plan (including all costs of production, inventory, and backorders).

A) Will the current workforce using regular and overtime output - be able to satisfy the forecast demand? (Show your work) Hint: Calculate the 6-month workforce capacity (measured in aggregated units) and compare it to the forecasted 6-month total demand (measured in aggregated units). Include the overtime output in your calculation.

B) Determine the total cost of the plan, including production, subcontractor, inventory, and backorder costs.

Period		Jan	Feb	March	April	May	June	Total
Forecast		300	320	320	340	320	320
Output	reg.
	Part-tome
	Over-time
	subcontract
output forecast
inventory	Beginning
	Ending
	average
Backlog	Monthly status
	Accumulated status
Cost
output	reg.
	part-time
	overtime
	subcontract
inventory
back order
total

Output Regular Part-Time Overtime Subcontract Output-Forecast Inventory Beginning Ending Average Backlog Monthly status Accumulated status Costs Output Regular Part-Time Overtime Subcontract Inventory Backorder Total

C)Write the plans costs here: Regular Production Cost: Part-Time Production Cost: Overtime Production Cost: Subcontractor Cost: Inventory Costs: Total cost of the plan: