Question 1. Aggregate Planning (25 marks) Mis a company that produces handbags. The company is trying to develop an aggregate plan for the next 6 months. The demand forecast, number of working days for each month, and cost information are as follows: Sepe Demand forecast Number of working dayse Jule 1300 21 Aug 800 23 9002 22e Octe 1000 21 Nove 600 22e Dece 1600 20e Materiale $100 per unite Straight time $10 per houre Overtime $15 e per houre Hiringe $50 el per workere Layoff $75 el per workere Inventory holdings $200 per unit per month Backordere $30 per unit per month Subcontracting $1504 per unite At the beginning of July, there are 300 units of initial inventory and 10 workers. Besides, the following assumptions are made: The productivity is 0.5 unit per hour, with 8 hours per day: Round up "Number of workers" to the next whole number: Once scheduled, all workers will produce at their full potential each month:- Inventory holding cost and backorder cost are calculated based on the ending inventory of each month; Hiring cost or layoff cost is incurred when the total number of workers changes. Questions: 1. Use the following strategies to develop aggregate plan in the subsequent three tables respectively. Plan A: Pure chase strategy. (7 marks) Plan B: Pure level strategy. (7 marks) Plan C: A constant workforce of 10 workers; use overtime to fulfil extra demands in July, August, and September, and use subcontracting to fulfil extra demands in October, November, and December. (10 marks) (11) Find out the strategy with the least total costs. (1 mark) Plan A: Pure chase strategy. Totale Jule 13004 214 Aug 800 234 Sep 900 Oct 1000 21 Nove 600 22 Dece 1600 20 62004 129 224 Demand forecast Working days (per month Aggregate Plan Beginning inventory Production required Production hours required Number of workers Workers hired Workers laid off Units produced-regular Units produced-overtime Units subcontracted Ending inventory Cost Material Straight time Overtime Hiring Layoff Inventory holding Backorder Subcontracting Total: Tiffffffff; T: T.T.T.T. Plan B: Pure level strategy. Jul 1300 214 Aug 8004 23 Sepe 9004 224 Oct 1000 214 Nove 600 22 Dece 16004 204 Totale 620044 129 T. T. T. T. T. T. T. T. Demand forecast Working days (per month) Aggregate Plan Beginning inventory Production required Production hours required Number of workers Workers hired Workers laid off Units produced-regular Units produced-overtime Units subcontracted Ending inventory Cost Material Straight time Overtime Hiring Layoff Inventory holding Backorder Subcontracting Total: Plan C: Constant workforce with overtime in the first 3 months and subcontracting in the last 3 months. Jule 1300 21 Aug 8004 234 Sep 9004 224 Oct 1000 21 Nove 6004 224 Dece 16004 204 Totale 62004 129 Demand forecast Working days (per month Aggregate Plan Beginning inventory Production required Production hours required Number of workers Workers hired Workers laid off- Units produced-regular Units produced-overtime- Units subcontracted Ending inventory Cost *****.*; Material Straight time Overtime Hiring Layoff Inventory holding Backorder Subcontracting Total