The total regular production cost=$

The total subcontracting cost=$

A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Table 1 Production Days 22 Demand Forecast 800 18 650 Month 1 January 2 February 3 March 4 April 5 May 6 June 21 850 Avg Dem Per Other data Prod. Day Inventory carrying cost $5 per unit per month Subcontracting cost per unit $10 per unit 36.36 Average pay rate $5 per hour ($40 per day) Overtime pay Rate $7 per hour (above 8 hrs per 36.11 day) 40.48 Labor-hours per unit 1.6 hrs per unit 52.38 Cost of increasing daily $300 per unit production rate (hiring & 54.55 training) 62.5 Cost of decreasing daily $600 per unit production rate (layoffs) 21 1,100 22 1,200 20 1,250 The production rate per day = 30 units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production 660 Subcontract (Units) Demand 800 140 540 110 Month 1 January 2 February 3 March 4 April 5 May 6 June 630 220 650 850 1,100 1,200 1,250 630 470 660 540 600 650 The total regular production cost = $ 29,760. (Enter your response as a whole number.) The total subcontracting cost = $ 21300. (Enter your response as a whole number.) Total cost with plan 5 = $ 51060 . (Enter your response as a whole number.) b) Juarez has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan. The production rate per day = 35 units. (Enter your response as a whole number.) Fill in the table below. (Enter your responses as whole numbers.) Regular Production Subcontract (Units) Demand 800 650 Month 1 January 2 February 3 March 4 April 5 May 6 June 850 1,100 1,200 1,250