Question: Compute the total cost for each aggregate plan using these unit costs: Regular output = K35 Overtime = K55 Subcontract = K60 Average Balance Inventory

Compute the total cost for each aggregate plan using these unit costs:

Regular output = K35

Overtime = K55

Subcontract = K60

Average Balance Inventory = K10

Month

Jan

Feb

Mar

Apr

May

Jun

Forecast Output

300

320

320

340

320

320

Regular

300

300

300

300

300

300

Overtime

20

20

20

20

20

20

Subcontract

0

0

0

0

0

0

After complaints from some workers about working overtime every month during the first half of the year, the manager is now considering adding some temporary workers for the second half of the year, which would increase regular output to a steady 350 units a month, not using any overtime, and using subcontracting to make up needed output. Determine the total cost of that plan. Should the manager entertain workers complaints? Explain.

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