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.
Table 1
Month Production Days Demand Forecast
January 22 900
February 18 700
March 21 800
April 21 1200
May 22 1500
June 20 1100
Other Data
Inventory Carrying Cost $8 per unit per month
Subcontracting cost per unit $12 per unit
Average pay rate $5 per hour ($40 per day)
Overtime pay Rate $7 per hours (above 8 hours per day)
Labor hours per unit 1.6 hrs per unit
Cost of increasing daily production rate (hiring and training) $300 per unit
Cost of decreasing daily production rate (layoffs) 6$600 per unit
b) Juarex has yet a sixth plan. A constant workforce of 7 is selected, with the remainder of demand filled by subcontracting. Evaluate this plan.
The production rate per day= ____ units (whole number)