manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a forecast of expected demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4 and again in period 8, as can be seen from the following forecasts: Period 1 2 3 4 5 6 7 8 9 Total Forecast 1 2 3 4 5 6 7 8 9 TOTAL 190 230 260 280 210 170 160 260 180
manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a forecast of expected demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4 and again in period 8, as can be seen from the following forecasts: Period 1 2 3 4 5 6 7 8 9 Total Forecast 1 2 3 4 5 6 7 8 9 TOTAL 190 230 260 280 210 170 160 260 180
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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A manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a
Period 1 2 3 4 5 6 7 8 9
Total Forecast
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | TOTAL |
| 190 | 230 | 260 | 280 | 210 | 170 | 160 | 260 | 180 | 1,940 |
The department now has 20 full-time employees, each of whom can produce 10 units of output per period at a cost of $6 per unit. Inventory carrying cost is $5 per unit per period, and backlog cost is $10 per unit per period.
What is the total inventory cost?
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