Question: The current aggregate demand requirements for a firm are shown below for the next six months: Month Demand May 370 June July 350 350 Aug

The current aggregate demand requirements for a

The current aggregate demand requirements for a firm are shown below for the next six months: Month Demand May 370 June July 350 350 Aug Sept Oct 350 380 400 The firm always plans to meet all demand. The firm currently has 370 workers capable of producing 370 units in a month (1 unit/worker). The workforce can be increased at a cost of $650 per worker) or decreased (at a cost of $1,300 per worker). Inventory holding cost is $225 per unit per month. The firm currently has 30 units of inventory on hand, and it would like to have 30 units available at the end of each month. Regular production cost is $4,250 per unit. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. What should the aggregate plan be if the inventory holding cost is to be minimized? (Leave no cells blank - be certain to enter "0" wherever required.) Month Demand Ending Inventory Number of Workers Hire Fire May June July Regular Production 370 350 350 350 380 400 2,200 370 350 350 350 380 400 2,200 August September October Total b. What is the cost of this plan? Total cost

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