Problem: Aggregate Planning Develop a level aggregate plan using inventory and back orders. (A) What is the production rate per period? (B) No overtime is to be used. What is the required workforce level and how many workers are hired or fired at the beginning of period 1? (C) What is the maximum ending inventory and when does it occur? (D) What is the maximum amount of back orders and when does it occur? (E) What is the total cost? (F) What is the cost per unit? $10 $15 $200 Cost data: Regular time labor cost per hour Overtime time labor cost per hour Subcontracting cost per unit (labor only) Back order cost per unit per period Inventory holding cost per unit per period Hiring cost per employee Firing cost per employee $50 $800 $600 Capacity Data: Beginning workforce Beginning inventory Beginning back orders Production standard per unit (hours) Regular time available per period (hours) Overtime available per period (hours) 50 employees 0 units o units 4 hours of labor per unit 160 hours per period per employee 40 hours per period per employee Demand: Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 2,720 units 1,680 units 1,620 units 2,080 units 2,210 units 2,740 units 2,810 units 2,700 units