(a) Worksheet 8.1 provides the solution to this problem and the corresponding aggregate plan. The total cost of the plan is $360,400,000.
(b) If the number of overtime hours per employee were increased from 20 to 40 it would result in decreasing the total cost to $356,450,000. So, it is advantageous to do it.
(c) If the number of employees is decreased to 1200 and the overtime hours per employee are held at 20 and 40 then the total costs of the plan are $363,324,000 and $357,422,000, respectively. If the number of employees is increased to 1300 and the overtime hours per employee are held at 20 and 40 then the total costs of the plan are $358,790,000 and $356,270,000, respectively. So, the value of additional overtime increases as workforce size decreases.
(d) We add a new constraint: . The cost will be $363,049,982.
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a-b-c-d.docx
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