Table below provides the demand forecast and production day information for an aggregate plan. Assume that no back orders are allowed in this case. Month January February March April May June Demand Forecast 3,000 4,500 3,400 2,500 4,000 3,200 Production Days 22 18 21 21 22 20 The costing information that is used to evaluate the total cost of each plan is as follows: • Inventory carrying cost: $4 per unit per month • Subcontracting cost per unit: $15 per unit • Working hours: 8 hours per day • Average pay rate: $12 per hour ($96 per day per worker) • Labour-hours to produce a unit: 2 hours per unit • Cost of increasing daily production rate (hiring and training): $300 per unit • Cost of decreasing daily production rate (layoffs): $700 per unit Use these information to formulate an aggregate plan. The firm would like to use level strategy: constant workforce for the aggregate planning. The firm chooses the average demand of the six months to calculate the number of workers required. The number of workers to hire is the minimum number of workers required to produce the average demand of the six months, assuming that there is an average of 20 days in a month. Assume there is zero inventory at the beginning of January. What is the total inventory carrying cost over the six months (based on the inventory level at the end of each month)? Group of answer choices $13,671 $25,341 $20,783 $19,104
Table below provides the demand
| Month | January | February | March | April | May | June |
| Demand Forecast | 3,000 | 4,500 | 3,400 | 2,500 | 4,000 | 3,200 |
| Production Days | 22 | 18 | 21 | 21 | 22 | 20 |
The costing information that is used to evaluate the total cost of each plan is as follows:
• Inventory carrying cost: $4 per unit per month
• Subcontracting cost per unit: $15 per unit
• Working hours: 8 hours per day
• Average pay rate: $12 per hour ($96 per day per worker)
• Labour-hours to produce a unit: 2 hours per unit
• Cost of increasing daily production rate (hiring and training): $300 per unit
• Cost of decreasing daily production rate (layoffs): $700 per unit
Use these information to formulate an aggregate plan. The firm would like to use level strategy: constant workforce for the aggregate planning. The firm chooses the average demand of the six months to calculate the number of workers required. The number of workers to hire is the minimum number of workers required to produce the average demand of the six months, assuming that there is an average of 20 days in a month. Assume there is zero inventory at the beginning of January. What is the total inventory carrying cost over the six months (based on the inventory level at the end of each month)?
Group of answer choices
$13,671
$25,341
$20,783
$19,104
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