Develop an aggregate plan with the following information.

Cost Table

December production is $1570$ units.

$-$ production $/$ labour cost is $$17\mathrm{.}25/$ hour

$-$ labour hours per unit $=3\mathrm{.}0$

$-$ layoff cost is $$75/$ unit

$-$ hiring cost is $$55/$ unit

$-$ inventory carrying cost is $$36/$ unit $/$ month

Produce at a rate equal to the average daily demand, Level plan. $\text{'}$

This plan uses inventory and will allow inventory to fluctuate over the life of the plan.

Period

Production Days

Demand

Forecast

Production

Inventory Change

Ending Inventory

Total Cost

January $211570$

February $231880$

March $281800$

April $282650$

Calculate the costs associated with this plan and select the correct Total Plan Costs from the four listed.

$$450,733$

$$425,733$

$$428,740$

$$428,733$