Question: Q1 Sara & Zara Sdn Bhd needs an aggregate plan for July to December. The company has gathered the data as shown in Table Q1

Q1 Sara & Zara Sdn Bhd needs an aggregate plan

Q1 Sara & Zara Sdn Bhd needs an aggregate plan for July to December. The company has gathered the data as shown in Table Q1 for batik demand. Table Q1 : Batik demand Month Demand July 400 August September 500 550 October 700 November December 800 700 Additional information; Holding Cost RM 8 piece per month Subcontracting RM 80 per piece Regular time labour RM 10 per hour Overtime labour RM 16 per hour per worker per day Hiring cost RM 40 per worker Layoff Cost RM 80 per worker Current workforce 15 people Labour hours per piece 4 hours Workdays per month 20 day Beginning Inventory Nil Calculate the production cost for the planning horizon using a constant workforce strategy by varying overtime and inventory. (25 marks)

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