Question

A company is planning the aggregate production capacity required to produce the sales forecast in this table: Sales Forecast (thousands of tons) Resin Ist Quarter 2nd Quarter 3rd Quarter 4th Quarter 9.0 7.0 6.0 10.0 8.0 3.0 12.0 5.0 4.0 14.0 10.0 7.0 Ample machine capacity exists to produce the forecast and each ton of resin re- quires five labor-hours. a. Compute the aggregate demand for resin in each quarter. b. Compute the aggregate number of labor-hours in each quarter c. If each worker works 520 hours per quarter, how many workers will be re- quired in each quarter?

Answer 1

a.)

b.) 1 ton requires 5 labor hours.

c.) 1 worker works for 520 hours in a quarter