DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are

Production time $1$ hour per unit Beginning inventory $500$ units

Average labor

cost

$$10$ per hour Safety stock One$-$half month

Workweek $5$ days, $8$ hours

each day

Backorder cost $$20$ per unit per

month

Days per month Assume $20$ workdays

per month

Carrying cost $$5$ per unit per

month

The forecast for next year is

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

$2,5003,0004,0003,5003,5003,0003,0004,0004,0004,0003,0003,000$

$$ Management prefers to keep a constant workforce and production level, absorbing

variations in demand through inventory excesses and shortages. Demand not met is car$-$

ried over to the following month.