Question: Develop the following aggregate plan and calculate the total cost of the plan using the information given in table below. Jan Feb March April May

Develop the following aggregate plan and

Develop the following aggregate plan and calculate the total cost of the plan using the information given in table below. Jan Feb March April May June Demand Forecast 12000 14500 15000 20000 30000 22000 Number of Working Days by Month 26 24 26 25 27 22 Safety Stock Policy is %10 of demand forecasts in each month Costs Inventory holding cost $75 S per unit per month Marginal cost of stockout $25 S per unit per month Marginal cost of subcontracting $150 S per unit Labor hours required per unit 2 hours per unit Regular time cost (first 8 hours each day) $50 S per hour Overtime cost $100 S per hour Plan: Production with constant workforce (150 workers); not allowed to overtime and backordering; only subcontracting is allowed to meet demands when required

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