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A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory August 500 100 September 800 October 1200 November 700 A. None of the given choices B. 33300 dollars C. Chase D. Hybrid E. 600 F. Level G. Less than 33000 dollars H. Flexibility December 300 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts and start the next year with an inventory level of 100 units. - What is the total cost of the optimal aggregate plan? - What type of strategy is being used by the company? ✓ What is the quantity of regular production in October?

A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory August 500 100 September 800 October 1200 November 700 A. None of the given choices B. 33300 dollars C. Chase D. Hybrid E. 600 F. Level G. Less than 33000 dollars H. Flexibility December 300 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts and start the next year with an inventory level of 100 units. - What is the total cost of the optimal aggregate plan? - What type of strategy is being used by the company? ✓ What is the quantity of regular production in October?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory August 500 100 September 800 October 1200 A. None of the given choices B. 33300 dollars C. Chase D. Hybrid E. 600 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts and start the next year with an inventory level of 100 units. What is the total cost of the optimal aggregate plan? ✓ What type of strategy is being used by the company? ✓ What is the quantity of regular production in October? F. Level November 700 G. Less than 33000 dollars H. Flexibility December 300
Transcribed Image Text:A company faces the aggregate planning problem shown in the table below. Cost of regular production is $8 per unit, the cost of producing the same unit on overtime is $15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in inventory from one month to the next is $6. Forecast Beginning Inventory August 500 100 September 800 October 1200 A. None of the given choices B. 33300 dollars C. Chase D. Hybrid E. 600 The labor contract at the plant prohibits both overtime and subcontracting output to exceed 400 units in any five month window. The plant capacity is 20 units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts and start the next year with an inventory level of 100 units. What is the total cost of the optimal aggregate plan? ✓ What type of strategy is being used by the company? ✓ What is the quantity of regular production in October? F. Level November 700 G. Less than 33000 dollars H. Flexibility December 300
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