A ?Juarez, Mexico, manufacturer of roofing supplies hasdeveloped 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 aggregateplan. For this? plan, plan? 5, the firm wishes to maintain aconstant workforce of 6?, using subcontracting to meet remainingdemand. Evaluate this plan.

To determine whether this plan is? desirable, first calculatedemand per day for each month ?(enter your responses rounded to thenearest 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 responseas a whole? number.)

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

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	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 yourresponse as a whole? number.)

The total subcontracting cost =? $ ______ (Enter your responseas a whole? number.)

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

The total subcontracting cost =? $ _______ (Enter your responseas a whole? number.)

Total cost with plan 6 =? $ _______ ?(Enter your response as awhole? number.)