Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information. Demand Capacity Regular Overtime 1 160 Regular time Overtime 150 10 Cost Per Unit Subcontract Inventory holding, per month 2 150 150 10 $50 75 80 4 Click here for the Excel Data File MONTH 3 160 150 0 4 180 150 10 5 170 160 10 6 140 160 10 Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No pack orders are allowed. Regular capacity = Regular production. (Negative amounts should be indicated by a minus sign. Leave no

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Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No
back orders are allowed. Regular capacity = Regular production. (Negative amounts should be indicated by a minus sign. Leave no
cells blank - be certain to enter "0" wherever required.)
Period
Forecast
Output
Regular
Overtime
Subcontract
Output - Forecast
Inventory
Beginning
Ending
Average
Backlog
Costs:
Regular
Overtime
Subcontract
Inventory
Backlog
Total
1
160
2
150
3
160
4
180
5
170
6
140
Total
960
Transcribed Image Text:Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed. Regular capacity = Regular production. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Period Forecast Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Regular Overtime Subcontract Inventory Backlog Total 1 160 2 150 3 160 4 180 5 170 6 140 Total 960
Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six
months using the following information.
Demand
Capacity
Regular
Overtime
1
160
Regular time
Overtime
150
10
Cost Per Unit
Subcontract
Inventory holding, per month
2
150
150
10
$50
75
80
4
Click here for the Excel Data File
MONTH
3
160
150
0
4
180
150
10
5
170
160
10
6
140
160
10
Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No
back orders are allowed. Regular capacity= Regular production. (Negative amounts should be indicated by a minus sign. Leave no
cells blank - be certain to enter "0" wherever required.)
Transcribed Image Text:Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information. Demand Capacity Regular Overtime 1 160 Regular time Overtime 150 10 Cost Per Unit Subcontract Inventory holding, per month 2 150 150 10 $50 75 80 4 Click here for the Excel Data File MONTH 3 160 150 0 4 180 150 10 5 170 160 10 6 140 160 10 Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed. Regular capacity= Regular production. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
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