10. DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are

The forecast for next year is

Management prefers to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the following month.
Develop an aggregate plan that will meet the demand and other conditions of the problem. Do not try to i nd the optimum; just i nd a good solution and state the procedure you might use to test for a better solution. Make any necessary assumptions.

Production time Average labor cost Workweek 1 hour per unit $10 per hour 5 days, 8 hours Beginning inventory 500 units Safety stock One-half month Shortage cost $20 per unit per each day month Days per month Assume 20 workdays per month Carrying cost $5 per unit per month