A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecas

Question

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. 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).

Explanation / Answer

Calculations for demand per day is based on the formula Averaage demand per Production day = Demand Forecast divided by number of Production days, as follows:

Constant workforce of 6 means, 48 hours per day that results in production of 30 (48/1.6) units per production day and the cost per production day is $240 (40*6). Production plan with the Total cost of $50,560 (20,800+29,760)

Production Demand Avg Dem Month Days Forecast Per Prod. Day 1 Jan. 22 950 43 2 Feb. 18 750 42 3 Mar. 21 750 36 4 Apr. 21 1000 48 5 May 22 1300 59 6 June 20 1050 53

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