Mercury Electronics must develop a plan to allocate capacity to fulfilling forecasted demand of 400 units inMarch, 500 units in April, and 700 units in May. Mercury has 50 units of inventory currently on hand. Foreach month, Mercury can produce units as follows:Regular TimeMonthMarchOvertime50Subcontracting100350April40050100May45050100Assume the following costs:Regular time cost per unit$50Overtime cost per unit$65Subcontract cost per unit$80Carrying cost per unit per month$1Back order cost per unit per month$4Develop an Excel model that allocates production capacity to satisfy demand at a minimum cost.

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Description: Mercury Electronics must develop a plan to allocate capacity to fulfilling forecasted demand of 400 units inMarch, 500 units in April, and 700 units in May. Mercury has 50 units of inventory currently on hand. Foreach month, Mercury can produce unit

Production Capacity refers to the maximum possible output with the use of economic resources. It is…

Business

Operations Management

Mercury Electronics must develop a plan to allocate capacity to fulfilling forecasted demand of 400 units in March, 500 units in April, and 700 units in May. Mercury has 50 units of inventory currently on hand. For each month, Mercury can produce units as follows: Regular Time 350 Overtime Subcontracting 100 Month March April May 50 400 450 50 100 50 100 Assume the following costs: Regular time cost per unit $50 Overtime cost per unit $65 Subcontract cost per unit $80 Carrying cost per unit per month Back order cost per unit per month $1 $4 Develop an Excel model that allocates production capacity to satisfy demand at a minimum cost.

Mercury Electronics must develop a plan to allocate capacity to fulfilling forecasted demand of 400 units in March, 500 units in April, and 700 units in May. Mercury has 50 units of inventory currently on hand. For each month, Mercury can produce units as follows: Regular Time 350 Overtime Subcontracting 100 Month March April May 50 400 450 50 100 50 100 Assume the following costs: Regular time cost per unit $50 Overtime cost per unit $65 Subcontract cost per unit $80 Carrying cost per unit per month Back order cost per unit per month $1 $4 Develop an Excel model that allocates production capacity to satisfy demand at a minimum cost.

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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