Develop an aggregate plan that uses steady output

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Reference no: EM131317238

Spring and Summer Fashions, a clothing producer, has generated a forecast for the next eight weeks. Demand is expected to be fairly steady, except for periods 3 and 4, which have higher demands. The company typically hires seasonal workers to handle the extra workload in periods 3 and 4. The cost for hiring and training a seasonal worker is $50 per worker, and the company plans to hire two additional workers and train them in period 3, for work in period 4, and then lay them off (no cost for layoff).

Develop an aggregate plan that uses steady output from regular workers with added output from the two seasonal workers in period 4.

The output rate for the seasonal workers is slightly less than that of regular workers, so their cost per unit is higher.

The cost per unit for regular workers is $4 per hour, while cost per unit for the seasonal workers is $5 per unit. Backlog cost is $1 per unit per period.

Reference no: EM131317238

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