Question 2 - Aggregate Operations Planning [15 Marks/ Part-A. A manager has prepared a forecast of expected aggregate demand for the next six periods. Using the given information, determine the following. 15 Marks/ Period 2 3 4 5 6 Forecast 200 200 300 400 500 200 Regular time: $20 per unit (280 units per period maximum) Overtime: $30 per unit (40 units per period maximum) Subcontracting None available Beginning Inventory: None Holding cost: $1 per unit per period Backorder cost: $5 per unit per period 1A. What is the total cost of this Aggregate Plan? 15 marks) 1 2 3 4 5 6 Total Forecast Output Regular Part Time Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backorders Costs Regular Part Time Overtime Subcontract Hire/Layoff Inventory @ Back orders 2A. If hiring cost is $500 and firing cost is $400, would it be more economical on a per unit basis to use overtime or to hire and fire a temporary person (who can produce a maximum of 40 units per period)? What would be the difference in total costs for the six periods? [2 marks] Part-B- Develop an aggregate production plan for a furniture producer based on the following information. Define the Total Cost for each plan. 18 Marks] Cost and Production Information: Regular production cost - $50 per unit Overtime production cost = $75 per unit Subcontracted production cost - $100 per unit Inventory holding cost = $10 per unit per month Backorder cost - $20 per unit per month Hiring cost - $200 per worker hired Termination/Firing cost - $150 per worker terminated Overtime production limit=max of 100 units per month Production rate= 30 units per worker per month Opening inventory level - 200 units Opening workforce level - 45 employees Turs MacBook