Question: Chick - fil - A is preparing its aggregate plan for the first six months of 2 0 2 3 . The tables below contain

Chick-fil-A is preparing its aggregate plan for the first six months of 2023. The tables below contain the monthly demand forecast, working days per month, and cost information.
Month Expected Demand Production Days
January 18020
February 16020
March 22010
April 15010
May 25025
June 24015
Inventory carrying cost 15 per unit per month
Subcontracting cost per unit 30 per unit
Regular working hours per day 8 hours
Labor-hours to produce a unit 2 hours/unit
Average pay rate 10 per hour
Overtime pay rate 15 per hour
Cost of increasing daily production rate (hiring and training)150 per unit
Cost of decreasing daily production rate (layoffs)200 per unit
The company is considering the following three strategies:
Plan 1: A constant workforce, daily production rate = average requirements
Plan 2: Main a constant workforce at a necessary level to meet the lowest requirement, and to meet all demand above this level by subcontracting.
Plan 3: Hire and layoff workers as needed to produce exact requirements

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