28 May Question Aunt Dot’s located in New Orleans, LA, produces
Question
(a) Level production over the twelve months to meet average demand per month.
(b) Produce to meet demand each month. Absorb variations in demand by changing the size of the work force.
Month Demand Forecast
March 2000
April 1000
May 1000
June 1000
July 1000
August 1500
September 2500
October 3000
November 9000
December 7000
January 4000
February 3000
Use the following information to develop aggregate plans
??No backordering
??Overtime capacity per month up to regular production amount
??Subcontracting capacity per month unlimited
??Regular production cost $ 30 per container
??Overtime production cost $ 40 per container
??Subcontracting cost $ 50 per container
??Holding cost $ 2 per container per month
??No beginning inventory
??Beginning work force 10 workers
??Production rate 200 containers per worker per month
??Hiring cost $ 5,000 per worker
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