demand : B

a 2. Lakedemon, Inc. is a distributor of outdoor sport wears. Its products are distributed throughout Europe and Asia for several years. The company working for 8 hours a day and 20 days a month, and distributes its products to five distribution centers mainly. The production engineers at the manufacturing facility decided to analyze one of its products which have been sold for $45/product for a while. By considering seasonality in the demand of the product, monthly demand values are calculated as represented in the following table with the parameters of either A, B or C, varying based on your Student ID. Current workforce at the company is 18. Producing one unit of product takes 15 minutes per labor. At the beginning of the first period, there are 2500 products left from the previous period. Based on the company policy, demand of the products will be met initially from regular production capacity. If necessary, overtime or subcontractor options can be used. A maximum of 15% of the regular time capacity is allowed in overtime at an additional cost of $21/unit. There is no restriction with regard to the subcontractor. Cost Parameters Sum of the numbers in your Stockout cost $4/unit/month student ID Month 10-18 19-25 26+ Subcontracting cost $25/unit Demand Demand Demand Regular time cost $18/unit B Inv. Carrying cost $2/unit 16500 19800 21200 Hiring cost $25/labor 20500 18900 15200 Layoff cost $30/labor 3 22000 19500 17800 4 16200 21000 18000 18000 19500 15000 15000 17500 19000 A 1 2 5 6 (Note: If sum of the numbers in your student ID is within 10-18, monthly demand values are 16500, 20500, 22000, 16200, 18000 and 15000.) Develop six-month aggregated plans employing Plan A: A strategy with constant workforce and Plan B: A mixed strategy. Which strategy provides better solution? Compare the total costs of the plans