Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
bartleby

Concept explainers

bartleby

Videos

Textbook Question
Book Icon
Chapter 11, Problem 10P

Refer to Solved Problem 1. Prepare two additional aggregate plans. Call the one in the solved problem plan A. For plan B, hire one more worker at a cost of $200. Make up any shortfall using subcontracting at $8 per unit, with a maximum of 20 units per period (i.e., use subcontracting to reduce back orders when the forecast exceeds regular output). Note that the ending inventory in period 9 should be zero. Therefore, Total forecast – Total output = Quantity subcontracted. An additional constraint is that back orders cannot exceed 80 units in any period. For plan C, assume no workers are hired (so regular output is 200 units per period instead of 210 as in plan B). Use subcontracting as needed, but no more than 20 units per period. Compute the total cost of each plan. Which plan has the lowest cost? Assume regular monthly production = regular capacity.

Blurred answer
Students have asked these similar questions
Given the projected demands for the next six months, prepare aggregate plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime cost is $20 per unit, backorder cost is $30 per unit, inventory holding cost is $10 per unit based on maximum, subcontracting cost is $40 per unit, regular time cost of $20 per unit, and beginning inventory is 10. Month 1 2 3 45 6 Forecast 150 170 140 160 130 160 a. Prepare an aggregate plan with inventory and backlog allowed. Overtime and subcontracting are not allowed. b. Prepare an aggregate plan if the management decided to switch to chase strategy. They only allow backlog if absolutely needed. Regular production capacity is now 160.
manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 1000 units per month can be used. Backorders are allowed, and they are charged at the rate of $8 per unit per month. Inventory holding costs are $1 per unit per month based on maximum inventory. Determine the cost of this plan if regular time cost is $20 per unit, beginning inventory is zero, and initial backlog from previous plan is 100.  Month                                    Forecast 1                                             800 2                                             100 3                                             1200 4                                             1100 5                                             1000 6                                             900 a. Prepare an aggregate plan.b. Prepare an aggregate plan if the management decided to switch to chase…
Please help me obtain the answer of this question. Please provide me the solution/computation.

Chapter 11 Solutions

Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)

Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY