Question: Use the following data to establish a mixed (level+OT) aggregate plan. Number of workers = 17 workers, Regular pay = $21 per hour (for 8

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

Number of workers = 17 workers, Regular pay = $21 per hour (for 8 hours per day), OT pay = $31 per hour (beyond regular hours)

Labor-hour = 2 hours per unit, Inventory carrying cost = $25 per unit per month, Beginning inventory for Month 1 = 0

Month

Demand

Workdays

Regular-Time

Production

Ending Inventory

OT

Production

1

1400

24

2

2300

21

3

1496

22

Sum

5196

67

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

$236,532

$236,632

$236,732

$236,832

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