a company manufactures an assortment of products for the practice of recreation and leisure. total demand for the next seven months is the following: mois march april may june july aug sept total forecasts 50 44 55 60 60 40 50 359 use the following info to develop aggregate production schedules regular production costs: $240 per unit overtime production cost: $360 per unit regular capacity: 40 units per month overtime capacity: 8 units per month subcontracting cost: $420 per unit subcontract capacity: 12 units per month back order cost: $100 per unit per month initial inventory: 0 End inventory in September: 0 unit storage cost: $30 per unit per month (the monthly inventory cost is calculated based on the final inventory for the month number of employees: 5 workers hiring cost: $2,000 per employee thank you cost: $1,000 per month Prepare an overall production plan using each of the following guidelines and calculate the total cost for each program. Even if backorders are allowed, all demand forecast must be met by the end of September. question: a. With 5 workers, use regular production. If insufficient, supplement by using overtime and finally, subcontracting as needed. Backorders are not allowed, nor is labor variation allowed. Calculate the costs for this plan b. With 5 workers, use a plan where regular production and subcontracting are leveled for all months except September. Take a combination of back orders and inventory to deal with changes in demand Do not use overtime, or variation in manpower Calculate the costs of this plan c. Which of these plans is the least expensive
a company manufactures an assortment of products for the practice of recreation and leisure. total demand for the next seven months is the following:
| mois | march | april | may | june | july | aug | sept | total |
| forecasts | 50 | 44 | 55 | 60 | 60 | 40 | 50 | 359 |
use the following info to develop aggregate production
regular production costs: $240 per unit
overtime production cost: $360 per unit
regular capacity: 40 units per month
overtime capacity: 8 units per month
subcontracting cost: $420 per unit
subcontract capacity: 12 units per month
back order cost: $100 per unit per month
initial inventory: 0
End inventory in September: 0 unit
storage cost: $30 per unit per month (the monthly inventory cost is calculated based on the final inventory for the month
number of employees: 5 workers
hiring cost: $2,000 per employee
thank you cost: $1,000 per month
Prepare an overall production plan using each of the following guidelines and calculate the total cost for each program. Even if backorders are allowed, all demand
question:
a. With 5 workers, use regular production. If insufficient, supplement by using overtime and finally, subcontracting as needed. Backorders are not allowed, nor is labor variation allowed. Calculate the costs for this plan
b. With 5 workers, use a plan where regular production and subcontracting are leveled for all months except September. Take a combination of back orders and inventory to deal with changes in demand Do not use overtime, or variation in manpower Calculate the costs of this plan
c. Which of these plans is the least expensive
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