Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 180 units per month (Cost per Unit = $20). Overtime is limited to a maximum of 20 units per month (Cost per Unit =$30). Units purchased from the subcontractor (Cost per Unit = $36) cannot exceed 40 per month and the total purchases from the subcontractor over the 6 month period cannot be over 160 units. Backorders cannot exceed 40 units in any given month (Cost per Unit = $1 ) and must be no more than 10 in Period 6. Average Inventory Holding cost per Unit $4. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below. Month Regular Output Overtime Output Subcontract Beginning Inventory Total Available for Sale Less Forecast Plus Backlog-Current Period Less Backlog-Previous Period Ending Inventory Average Inventory 0 220 1 210 2 310 3 180 4 130 5 150 0 6 Total Required: Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost Solution. Leave a copy of your Spreadsheet in the DropBox.
Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 180 units per month (Cost per Unit = $20). Overtime is limited to a maximum of 20 units per month (Cost per Unit =$30). Units purchased from the subcontractor (Cost per Unit = $36) cannot exceed 40 per month and the total purchases from the subcontractor over the 6 month period cannot be over 160 units. Backorders cannot exceed 40 units in any given month (Cost per Unit = $1 ) and must be no more than 10 in Period 6. Average Inventory Holding cost per Unit $4. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below. Month Regular Output Overtime Output Subcontract Beginning Inventory Total Available for Sale Less Forecast Plus Backlog-Current Period Less Backlog-Previous Period Ending Inventory Average Inventory 0 220 1 210 2 310 3 180 4 130 5 150 0 6 Total Required: Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost Solution. Leave a copy of your Spreadsheet in the DropBox.
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...
Related questions
Question
Transcribed Image Text:Required:
Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost
Solution. Leave a copy of your Spreadsheet in the DropBox.
Total Cost Month 1 =
,4980)
Total Cost Month 2 =
,5730)
Total Cost Month 3 =
Total Cost Month 4 =
Total Cost Month 5 =
,3430)
Total Cost Month 6 =
Total Cost All Periods =
A/
A/
A/
A/
A/
A/
A
,26410)
Answer Format: No Dollar (S) signs or commas --- Answers should be whole numbers.
Hint: Range (4880
Hint: Range (5670
Hint: Range (3370
Hint: Range (25410
Transcribed Image Text:Aggregate Planning
Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time,
overtime, subcontract and backorders. Regular time is limited to 180 units per month (Cost per Unit = $20). Overtime
is limited to a maximum of 20 units per month (Cost per Unit =$30). Units purchased from the subcontractor (Cost per
Unit = $36) cannot exceed 40 per month and the total purchases from the subcontractor over the 6 month period
cannot be over 160 units. Backorders cannot exceed 40 units in any given month (Cost per Unit = $1 ) and must be no
more than 10 in Period 6. Average Inventory Holding cost per Unit = $4. Forecasted Demand as well as Beginning and
desired Ending Inventory are listed in the table below.
Month
Regular Output
Overtime Output
Subcontract
Beginning Inventory
Total Available for Sale
Less Forecast
Plus Backlog-Current Period
Less Backlog-Previous
Period
Ending Inventory
Average Inventory
0
220
1
210
2
310
3
180
130
5
150
6
Total
Required:
Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost
Solution. Leave a copy of your Spreadsheet in the DropBox.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 5 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.