solution

T-Pop produces locally made soda. The Company needs to develop its production plan for the following 6 months. The forecast and available operation days are as follows:

April	May	June	July	Aug	Sept
Available days	15	25	28	27	16	20
Demand (100s of boxes)	88	95	123	176	140	63

Consider the following operating parameters:

Past data indicates that in 26 days, the factory was able to produce 10400 boxes with 100 workers.

The cost of hiring 1 worker is $125, the layoff cost is $300. The cost of inventory is $0.75 per box. The normal salary is $1600 per worker per month.

The initial inventory is 4500 boxes. Also, in March, the company has 86 workers. Management needs to have 3000 boxes at the end of September.

Define the aggregate plan to operate from Apr-Sept. Justify your assumptions and the method that you choose. Remember to look for the option that decreases cost (max productivity).