SummerFun, Inc. produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast: 3 4 5 6 7 Month Forecast 1 60 2 54 55 50 45 60 47 Use the following information to develop aggregate plan: Reg. Production Cost: P80 per unit 50 units per mo. Reg. Capacity: Subcon Cost Overtime: OT capacity: Subcon Capacity P120 per unit 5 units per mo 12 units per mo. P140 per unit Holding Cost P10 Back-Order Cost P50 per unit No. of Workers 5 workers Begg. Invty 3 units Use level strategy. Use a combination of backlogs, subcon & inxty to handle variations in demand. What is the total cost.
SummerFun, Inc. produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast: 3 4 5 6 7 Month Forecast 1 60 2 54 55 50 45 60 47 Use the following information to develop aggregate plan: Reg. Production Cost: P80 per unit 50 units per mo. Reg. Capacity: Subcon Cost Overtime: OT capacity: Subcon Capacity P120 per unit 5 units per mo 12 units per mo. P140 per unit Holding Cost P10 Back-Order Cost P50 per unit No. of Workers 5 workers Begg. Invty 3 units Use level strategy. Use a combination of backlogs, subcon & inxty to handle variations in demand. What is the total cost.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:SummerEun, Inc. produces a variety of recreation and leisure products. The production manager has developed an
aggregate forecast:
3
4
5
6
7
Month
Forecast
1
60
2
54
55
50
45
60
47
Use the following information to develop aggregate plan:
Reg. Production Cost:
P80 per unit
50 units per mo
Reg. Capacity:
Subcon Cost
Overtime:
OT capacity:
Subcon Capacity
Back-Order Cost
P120 per unit
5 units per me
12 units per mo
P50 per unit
P140 per unit
Holding Cost
P10
Begg. Invtx
3 units
No. of Workers 5 workers
Use level strategy. Use a combination of backlogs, subcon & joxty to handle variations in demand.
What is the total cost.
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