There is historical data for the first 6 months and an aggregate plan for the next 6 months has been requested. Use a Potential trend to determine the forecast demand for the plan. There are currently 10 workers, each capable of producing 15 units per month. Assume that each month has the same number of production days. New employees can be hired at a cost of $ 400 per worker. If workers are laid off, the cost is $ 1000 each. The products have a standard unit production cost of $ 300. The cost of each unit produced overtime is $ 60 for labor. Additionally, each worker can produce only 3 additional units per month using overtime, and overtime capacity is limited to 15 units. If the company has any inventory it will cost you $ 6 per unit per month. Failure to attend to the demand incurs in profit losses of $ 120.

Plan: Level off capacity with inventory

Month Historical producction 1 233 2 301 3 421 4 355 5 296 6 350