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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