PLEASE SHOW DETAILED CALCULATION

BMM3633 Sdn. Bhd. has developed a monthly forecast for a family of product. Data from July to December are presented in Table A. The company would like to begin development of an aggregate plan. Plan 1 is by a level strategy which maintained a constant workforce throughout 6 months period. Plan 2 is to maintain a constant workforce at a level necessary to meet the lowest demand month and to meet all demand above this level by sub-contracting. While Plan 3 is to hire and layoff workers as needed to produce according to monthly requirement. Table B provides the cost information necessary for analysing these three alternatives. As an experienced industrial engineer, which plan would you implement and why? Table A: Data for Monthly Forecast for BMM3633 Sdn. Bhd. Month Demand Forecast Production Days Demand Per Day (Computed) July 24 84 2000 1100 August 20 55 1750 23 76 September October 1500 24 63 1350 22 62 November December 1400 24 58 Total 9100 137 Table B: Detail Costing Information Item Description Inventory carrying cost RM 100 per unit per month Subcontracting cost RM 90 per unit Average pay rate RM 9 per hour (RM72 per day) Overtime pay rate RM 10 per hour (above 8 hours per day) Labor-hours to produce a unit 1.5 hours per unit Cost of increasing daily RM 500 per unit production rate (hiring and training) Cost of decreasing daily RM 900 per unit production rate (layoff)