Aggregate demand for a product family is given in the table below for the 4 quarters of 2021. Production cost on regular time is $3 per unit. The inventory cost is $1 per unit per quarter. Demand that cannot be met is a lost sale and accounted for at $9 per unit. When necessary, up to 100 units can be subcontracted at a cost of $5 per unit. Labor fluctuation costs are accounted for by costs of changes in production level: each unit of increase in production is accounted for at $2 per unit of increase and $1 per unit of decrease. The aggregate planning technique being considered is level production. That is, the production level is the same for each quarter. Compute the total annual cost of meeting demand for 2021. (Determine the number of units to produce in each month for level production (Total demand - initial inventory)/4. Then for each month, compute the number of units to be subcontracted, the inventory, and the lost sales). Report as a whole number with no commas. Quarter Demand Production Inventory Lost Sale 300 0 Win21 1000 ? ? ? Spr21 800 ? ? ? Sum21 300 ? ? ? Fal21 600 ? ? ?
Aggregate demand for a product family is given in the table below for the 4 quarters of 2021. Production cost on regular time is $3 per unit. The inventory cost is $1 per unit per quarter. Demand that cannot be met is a lost sale and accounted for at $9 per unit. When necessary, up to 100 units can be subcontracted at a cost of $5 per unit. Labor fluctuation costs are accounted for by costs of changes in production level: each unit of increase in production is accounted for at $2 per unit of increase and $1 per unit of decrease. The aggregate planning technique being considered is level production. That is, the production level is the same for each quarter.
Compute the total annual cost of meeting demand for 2021. (Determine the number of units to produce in each month for level production (Total demand - initial inventory)/4. Then for each month, compute the number of units to be subcontracted, the inventory, and the lost sales). Report as a whole number with no commas.
|
Quarter |
Demand |
Production |
Inventory |
Lost Sale |
|---|---|---|---|---|
|
|
300 |
0 |
||
|
Win21 |
1000 |
? |
? |
? |
|
Spr21 |
800 |
? |
? |
? |
|
Sum21 |
300 |
? |
? |
? |
|
Fal21 |
600 |
? |
? |
? |
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