Question: Please show the aggregate plan you developed by each strategy. Please also calculate the associated costs with each strategy, such as regular labor, hiring and
Please show the aggregate plan you developed by each strategy. Please also calculate the
associated costs with each strategy, such as regular labor, hiring and layoff, or subcontracting
costs, just like we practiced in class. And then add them up to calculate total cost associated
with each strategy.
Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through
December. The company has gathered the following data:
What will each of the three following strategies cost?
a Vary the workforce so that production meets demand. Chua had workers on board in June.
b Vary overtime only and use a constant workforce of eight.
c Hire workers in August and more in October and using subcontractor to satisfy remaining
demand. Chua had workers on board in June.
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