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Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end - items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. Initial Inventory Level = 1,000 units Regular Time = $15 Lost Sales Cost/Unit = $24 Inventory Carry Cost per unit = $3 Quarter One Two Three Four Total Beginning Inventory Jet Ski Engine 10,000 15,000 16,000 3,000 44,000 600 Snowmobile Engine 9,000 7,000 19,000 10,000 45,000 400 Total Engines 19,000 22,000 35,000 13,000 89,000 1,000 Average Demand Rate/Quarter 22,000 Units Regular Time Production Rate 22,000 Units

Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end - items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. Initial Inventory Level = 1,000 units Regular Time = $15 Lost Sales Cost/Unit = $24 Inventory Carry Cost per unit = $3 Quarter One Two Three Four Total Beginning Inventory Jet Ski Engine 10,000 15,000 16,000 3,000 44,000 600 Snowmobile Engine 9,000 7,000 19,000 10,000 45,000 400 Total Engines 19,000 22,000 35,000 13,000 89,000 1,000 Average Demand Rate/Quarter 22,000 Units Regular Time Production Rate 22,000 Units

Practical Management Science
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...
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Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end - items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. Initial Inventory Level = 1,000 units Regular Time = $15 Lost Sales Cost/Unit = $24 Inventory Carry Cost per unit = $3 Quarter One Two Three Four Total Beginning Inventory Jet Ski Engine 10, 000 15,000 16,000 3,000 44,000 600 Snowmobile Engine 9,000 7,000 19,000 10,000 45,000 400 Total Engines 19,000 22,000 35,000 13,000 89, 000 1,000 Average Demand Rate/Quarter 22, 000 Units Regular Time Production Rate 22,000 Units
Transcribed Image Text:Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end - items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. Initial Inventory Level = 1,000 units Regular Time = $15 Lost Sales Cost/Unit = $24 Inventory Carry Cost per unit = $3 Quarter One Two Three Four Total Beginning Inventory Jet Ski Engine 10, 000 15,000 16,000 3,000 44,000 600 Snowmobile Engine 9,000 7,000 19,000 10,000 45,000 400 Total Engines 19,000 22,000 35,000 13,000 89, 000 1,000 Average Demand Rate/Quarter 22, 000 Units Regular Time Production Rate 22,000 Units
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