Reference no: EM132297068

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. This exercise only contains part a. ?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 22 800 nothing 2 February 18 650 nothing 3 March 21 850 nothing 4 April 21 1 comma 100 nothing 5 May 22 1 comma 200 nothing 6 June 20 1 comma 250 nothing 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.