Question: Use the following data to establish a mixed (level+OT) aggregate plan. Number of workers = 19 workers, Regular pay = $23 per hour (for 8

Use the following data to establish a mixed (level+OT) aggregate plan.

Number of workers = 19 workers, Regular pay = $23 per hour (for 8 hours per day), OT pay = $33 per hour (beyond regular hours)

Labor-hour = 2 hours per unit, Inventory carrying cost = $27 per unit per month, Beginning inventory for Month 1 = 0

Month

Demand

Workdays

Regular-Time

Production

Ending Inventory

OT

Production

1

1500

24

2

2100

22

3

1748

23

Sum

5348

69

What is the total (labor + inventory + OT) cost?

$256,786

$256,836

$256,886

$256,936

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