Question: ABC Ltd. wants to develop aggregate production plan for a 4 month planning horizon. The demand and working days are given below: Month Demand Days

ABC Ltd. wants to develop aggregate productionABC Ltd. wants to develop aggregate production

ABC Ltd. wants to develop aggregate production plan for a 4 month planning horizon. The demand and working days are given below: Month Demand Days January 1000 22 February 800 24 March 2200 25 April 2500 19 ABC was producing 100 units daily in December last years. There are 200 units in the warehouse at the beginning of January, this year. ABC is running 8 hours a day. Production of one unit require 2 hours and the production requires workers. ABC has estimated the following costs: Carrying cost 3$/month Regular labor cost 22$/hour Overtime labor cost 33$/hour Hiring cost 250$/unit increase in daily production rate Layoff cost 400$/unit decrease in daily production rate Develop a production plan with constant workforce. Write down the total cost of your plan

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