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DAT, Inc. needs to develop an aggregate plan for its product line. Relevant data are
Production time:
Average labor cost:
Workweek:
Days per month:
Hiring cost:
Layoff cost:
Beginning inventory:
Safety stock:
Shortage cost:
Inventory cost:
Outsourced cost:
DAT Inc. currently employs 18 workers. The forecast for the next 6 months is:
Jan.
2400
Feb.
3000
Mar.
4000
Apr.
3500
May
3500
June
3000
Should the company use a chase strategy, a level strategy or a stable strategy with
outsourcing?