Question #3 11.5 marks Develop an aggregate production plan for a Winnipeg paper producer based on the following information. Define the Total Cost for each plan. Cost and Production Information Regular production cost - $10 per unit Overtime production cost = $15 per unit Subcontracted production cost = $20 per unit Inventory holding cost = $2 per unit per month Backorder cost-$5 per unit per month Hiring cost = $200 per worker hired Termination/Firing cost - $100 per worker terminated Overtime production limit=max of 20 units per month Production rate - 2 units per worker per month Opening inventory level - 10 units Opening workforce level - 30 employees The Demand for each one of the 6 months is defined on the tables below 1) Adopt the Level Approach using the Average Demand to be the constant production rate. You may use inventories and backorders. What is the total cost of this Aggregate Plan? 10.75 mark) Aggregate Production Plan Production Breakdown Hiring & Firing Period Demand Total Workforce Inventory Reg Overt Sub Hire Fire Prod. Prod. ime cont. 30 10 1 50 75 60 2 70 75 60 3 100 75 60 4 120 75 60 5 60 75 60 6 60 75 60 0 4 Average demand = (50+70+100+120 +60+60-10)/6 = 75 2) Adopt the Chase Approach. You can use hiring and firing, but not overtime or subcontracted production. What is the total cost of this Aggregate Plan? (0.75mark] Production Breakdown Hiring & Firing Period Demand Aggregate Production Plan Total Workforce Inventory Prod. 30 10 Hire Fire Reg. Prod. Overt ime Sub- cont. 0 1 50 2 70 3 100 4 120 5 60 6 60