Question: Datatrax Limited needs to develop an aggregate plan for its product line. Relevant data are given below: Production time: 1 hour per unit Average labor

Datatrax Limited needs to develop an aggregate

Datatrax Limited needs to develop an aggregate plan for its product line. Relevant data are given below: Production time: 1 hour per unit Average labor cost: Rs. 100 per hour Workweek: 5 days, 8 hours per day Working Days per month: 20 days Beginning inventory: 500 units Safety stock: Nil Shortage cost: Rs.200 per unit per month Carrying cost: Rs.50 per unit per month The forecast for next year is given below: Jan Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2500 3000 4000 3500 3500 3000 3000 4000 4000 4000 3000 3000 Feb Management prefers to keep a constant workforce and production level, absorbing variations in demand throuah variations in inventory. Demand not met ren Beginning inventory: 500 units Safety stock: Nil Shortage cost: Rs.200 per unit per month Carrying cost: Rs.50 per unit per month The forecast for next year is given below: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2500 3000 4000 3500 3500 3000 3000 4000 4000 44000 3000 3000 Management prefers to keep a constant workforce and production level, absorbing variations in demand through variations in inventory. Demand not met in a given month is carried over to the next month. Develop an aggregate plan to meet the demand and compute the associated costs. Make necessary assumptions and state the same, if any

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