Question: Use the following data to establish a mixed (level+OT) aggregate plan. Number of workers = 18 workers, Regular pay = $22 per hour (for 8

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

Number of workers = 18 workers, Regular pay = $22 per hour (for 8 hours per day), OT pay = $32 per hour (beyond regular hours)

Labor-hour = 2 hours per unit, Inventory carrying cost = $26 per unit per month, Beginning inventory for Month 1 = 0

Month

Demand

Workdays

Regular-Time

Production

Ending Inventory

OT

Production

1

1400

23

2

2200

21

3

1584

22

Sum

5184

66

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

$243,192

$243,292

$243,392

$243,492

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