Question: a ) What is the optimal aggregate plan for a wine distributor company that imports and repackages wine for retail sale? The company has 2

a) What is the optimal aggregate plan for a wine distributor company that imports and
repackages wine for retail sale? The company has 20 employees, each capable of packaging 1000
bottles of wine per day. The inventory holding cost is $1 per bottle per month, and the backlog
cost is $2 per bottle per month. The workers earn $2000 each per month. Given the demand and
working days for January to June, assess the aggregate plan without allowing backlogs, and
determine if cost savings can be achieved by permitting backlogs.
1.b) The distributor company is contemplating the utilization of temporary personnel during peak
demand periods. These temporary workers can be sourced from a local staffing agency, incurring
a cost of $2800 per month along with a one-time fee of $1000. If the temporary workers exhibit
efficiency comparable to regular employees, is it possible for the company to lower its expenses
by hiring temporary staff?
 a) What is the optimal aggregate plan for a wine distributor

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