Question

Consuelo​ Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day.

You manage a consulting firm down the street from Consuelo​ Chua, Inc., and to get your foot in the​ door, you have told Mr. Chua that you can do a better job at aggregate planning than his current staff. He​ said, "Fine. You do​ that, and you have a​1-year contract." To make good on your​ boast, you propose a new strategy. Hire 5 workers in August and 5 more in​ October, and subcontract to meet the rest of the demand. What will be the cost of this​ strategy?

Costs Holding cost ​$9​/disk drive​/Month Subcontracting ​$80​/disk drive ​Regular-time labor ​$12 Overtime labor ​$18​/hour ​(above 8​ hours) Hiring cost ​$45​/worker Layoff cost ​$80​/worker

Other data Current workforce​ (June) 8 people ​Labor-hours/disk drive 4 hours ​Workdays/month 20 days Beginning Inventory 150 disk drive​s* Ending Inventory 0 disk drives ​*Note that there is no holding cost for June.

Fill in the table below. ​(Enter all responses as whole numbers. In the​ hire/fire column, use positive numbers for hires​ -- plus signs​ omitted; negative numbers for​ layoffs.)

	Month	Demand		Beginning Inventory	Units Produced	Personnel on Staff	Hire​ / Layoff		Ending Inventory
0	June			150		8
1	July	420		nothing	nothing	nothing	nothing		nothing
2	August	450		nothing	nothing	nothing	nothing		nothing
3	September	550		nothing	nothing	nothing	nothing		nothing
4	October	650		nothing	nothing	nothing	nothing		nothing
5	November	800		nothing	nothing	nothing	nothing		nothing
6	December	700		nothing	nothing	nothing	nothing		nothing

fill in the blanks that have nothing

Answer 1

Solution :