Question

A ​Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the​ 6-month period January to June are presented in the table below. There are 8 hours of production per day.

​a) The firm would like to begin development of an aggregate plan. For this​ plan, plan​ 5, the firm wishes to maintain a constant workforce of 6​, using subcontracting to meet remaining demand. Evaluate this plan.

To determine whether this plan is​ desirable, first calculate demand per day for each month ​(enter your responses rounded to the nearest whole​ number).

Table 1 Month Production Days Demand Forecast Avg Dem Per Prod. Day 1 January 22 950 _______ 2 February 18 750 ________ 3 March 21 750 _______ 4 April 21 1,000 _______ 5 May 22 1,300 _______ 6 June 20 1,050 _______

Other data Inventory carrying cost ​$8 per unit per month Subcontracting cost per unit ​$12 per unit Average pay rate ​$5 per hour ​($40 per​ day) Overtime pay Rate ​$7 per hour​ (above 8 hrs per​ day) ​Labor-hours per unit 1.6 hrs per unit Cost of increasing daily production rate​ (hiring &​ training) ​$300 per unit Cost of decreasing daily production rate​ (layoffs) ​$600 per unit

The production rate per day = _____ units. ​(Enter your response as a whole​ number.)

Fill in the table below. ​(Enter your responses as whole​ numbers.)

                                                                                           

	Month	Demand	Regular Production	Subcontract ​(Units)
1	January	950	_______	______
2	February	750	________	______
3	March	750	________	______
4	April	1,000	_______	_______
5	May	1,300	______	_______
6	June	1,050	______	_______

The total regular production cost=​ $ ______ ​(Enter your response as a whole​ number.)

The total subcontracting cost =​ $ ______ (Enter your response as a whole​ number.)

Total cost with plan 5​ = ​$ ______ (Enter your response as a whole​ number.)

​b) Juarez has yet a sixth plan. A constant workforce of 7 is​ selected, with the remainder of demand filled by subcontracting. Evaluate this plan.The production rate per day = ______ units. ​(Enter your response as a whole​ number.)

Fill in the table below. ​(Enter your responses as whole​ numbers.)

	Month	Demand	Regular Production	Subcontract​ (Units)
1	January	950	_________	________
2	February	750	_________	________
3	March	750	_________	________
4	April	1,000	_________	__________
5	May	1,300	__________	_________
6	June	1,050	__________	_________

The total regular production cost =​ $ ______ ​(Enter your response as a whole​ number.)

The total subcontracting cost =​ $ _______ (Enter your response as a whole​ number.)

Total cost with plan 6 =​ $ _______ ​(Enter your response as a whole​ number.)

Answer 1

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