Chapter 13, question 7, part a: Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The com- pany has gathered the following data: COSTS

Holding cost	$8/disk/month
Subcontracting	$80/disk
Regular-time labor	$12/hour
Overtime labor	$18/hour for hours above 8 hours/worker/day
Hiring cost	$40/worker
Layoff cost	$80/worker

DEMAND*

July	400
Aug.	500
Sept.	550
Oct.	700
Nov.	800
Dec.	700

*No costs are incurred for unmet demand, but unmet demand (backorders) must be handled in the following period. If half or more of a worker is needed, round up. OTHER DATA

Current workforce (June)	8 people
Labor-hours/disk	4 hours
Workdays/month	20 days
Beginning inventory	150 disks**
No requirement for ending inventory	0 disks

**Note that there is no holding cost for June. What will each of the two following strategies cost? a) Vary the workforce so that production meets demand. Chua had eight workers on board in June. b) Vary overtime only and use a constant workforce of eight.

Group of answer choices

For July, units required = 400, number of personnel = 6, units short = 10

For July, units required = 400, number of personnel = 7, units over = 30

For July, units required = 250, number of personnel = 6, units short = 10

For July, units required = 250, number of personnel = 7, units over = 30

None of the above