A company currently has 5 workers and each worker produces 5 watches
per month. The operations manager is preparing a aggregate production
plan for the next 6 months. Opening inventory is 10 watches.
Regular Time labour Cost = 10 per watch
OT Labour = 15 per watch
Backordering = 10 per watch
Holding Cost = 2 per watch
Max OT output is 15 watches per month.
Month 1 Demand = 30
Month 2 = 50
Month 3 = 50
Month 4 = 60
Month 5 = 50
Month 6 = 20 Develop a (level) aggregate plan using 45 watches as a constant production rate. What is the total cost of this plan?
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