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Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units and costs $8 per unit. Overtime costs $19 and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $14 per unit. What is the total plan cost?   Hint: In a chase production plan, production is changed each time period to match the demand. Use regular production, overtime, and subcontracting to create the plan.   Month Forecast Regular Overtime Subcontracting January 250       February 400       March 500       April 350

Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units and costs $8 per unit. Overtime costs $19 and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $14 per unit. What is the total plan cost?   Hint: In a chase production plan, production is changed each time period to match the demand. Use regular production, overtime, and subcontracting to create the plan.   Month Forecast Regular Overtime Subcontracting January 250       February 400       March 500       April 350

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units and costs $8 per unit. Overtime costs $19 and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $14 per unit. What is the total plan cost?

 

Hint: In a chase production plan, production is changed each time period to match the demand. Use regular production, overtime, and subcontracting to create the plan.

 

Month

Forecast

Regular

Overtime

Subcontracting

January

250

 

 

 

February

400

 

 

 

March

500

 

 

 

April

350

 

 

 
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