Concept explainers
a)
To determine: Whether plan 5 will be suitable to maintain a constant workforce in order to meet the demand.
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
b)
To determine: Plan 6 to maintain the constant workforce and use the subcontract to meet the demand requirement.
Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.
c)
To summarize: The results from Plan 1 to Plan 6
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