b) Use the input data above and produce an aggregate plan using chase strategy Assume the initial number of employees is 10 What is the resulting total cost? What is the resulting net profit?

c)

Assumptions:

• No backorder is allowed.
• There are 7 workers in the beginning of January
• The firm cannot hire or lay-off more than 5 employees in a months

i. Formulate the aggregate plan.

ii. Develop the model in Excel.

iii. Use Excel Solver to find the optimal aggregate plan.

• What is the resulting total cost?
• What is the resulting net profit?

The demand forecast for the next 6 months, and other input data for Granville Inc. are : Month Demand Forecast Production Days 22 1,400 18 1,000 900 Selling price: $30 per unit Inventory carrying cost: $2 per unit per month Backorder cost: $5 per unit per month Working hours: 8 hours per day Average pay rate: $5 per hour ($40 per day per worker) Average material cost: $11 per unit Labour-hours to produce a unit: 1.6 hours per unit Cost of hiring a new employee: $300 Cost of laying off an existing employee: $500 Initial inventory: 300 units January February March April May June 21 21 1,100 800 1,300 22 20 Produce an aggregate plan using level strategy with constant workforce. What is the resulting total cost? What is the resulting net profit