Question: ABC Trailers assembles different types of small camping trailers demanded between January and June of each year. The demand generally peaks in April and May.

ABC Trailers assembles different types of small camping trailers demanded between January and June
of each year. The demand generally peaks in April and May. Next year's aggregate demand forecast
beyond the regular capacity is given in the following table:
The company can hire temporary workers to meet the above requirements. Each temporary worker
can produce 15 units per month. Hiring/training cost is approx. $1,000 per temp worker.
Inventory holding cost per camping trailer per month is $50, charged to average inventory level during
a month. Before January, there are no camping trailers on hand. 270 extra units are desired in inventory
at the end of June. Any shortage during a period is backordered at a cost of $150 per camping trailer
per month.
Find the monthly and total costs of Plan A (Chase) and Plan B (Adjusted Chase).
Plan A - Chase:
Note: Ending inventory of 270 units is desired in June, hence, in June, the output is 270 units more than
the demand.
Plan B - Adjusted Chase:
 ABC Trailers assembles different types of small camping trailers demanded between

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