Given the projected demands for the next six months, prepare aggregate plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime cost is $20 per unit, backorder cost is $30 per unit, inventory holding cost is $10 per unit based on maximum, subcontracting cost is $40 per unit, regular time cost of $20 per unit, and beginning inventory is 10. Month 1 2 3 456 Forecast 150 170 140 160 130 160 a. Prepare an aggregate plan with inventory and backlog allowed. Overtime and subcontracting are not allowed. b. Prepare an aggregate plan if the management decided to switch to chase strategy. They only allow backlog if absolutely needed. Regular production capacity is now 160.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Given the projected demands for the next six
months, prepare aggregate plan must wind up
with no units in ending inventory in Period 6.
Regular time capacity is 150 units per month.
Overtime cost is $20 per unit, backorder cost is
$30 per unit, inventory holding cost is $10 per
unit based on maximum, subcontracting cost is
$40 per unit, regular time cost of $20 per unit,
and beginning inventory is 10.
Month 1 2 3 45 6
Forecast 150 170 140 160 130 160
a. Prepare an aggregate plan with inventory and
backlog allowed. Overtime and subcontracting
are not allowed.
b. Prepare an aggregate plan if the management
decided to switch to chase strategy. They only
allow backlog if absolutely needed. Regular
production capacity is now 160.
Transcribed Image Text:Given the projected demands for the next six months, prepare aggregate plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime cost is $20 per unit, backorder cost is $30 per unit, inventory holding cost is $10 per unit based on maximum, subcontracting cost is $40 per unit, regular time cost of $20 per unit, and beginning inventory is 10. Month 1 2 3 45 6 Forecast 150 170 140 160 130 160 a. Prepare an aggregate plan with inventory and backlog allowed. Overtime and subcontracting are not allowed. b. Prepare an aggregate plan if the management decided to switch to chase strategy. They only allow backlog if absolutely needed. Regular production capacity is now 160.
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