OPERATIONS MANAGEMENT
OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781265224189
Author: Stevenson
Publisher: MCG
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Chapter 11, Problem 7P

SummerFun. Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast:

Chapter 11, Problem 7P, SummerFun. Inc., produces a variety of recreation and leisure products. The production manager has , example  1

Use the following information to develop aggregate plans.

Chapter 11, Problem 7P, SummerFun. Inc., produces a variety of recreation and leisure products. The production manager has , example  2

Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Hint: You will need extra output in April and August to accommodate demand in the following months.

a. Use regular production. Supplement using inventory, overtime, and subcontracting as needed. No backlogs allowed.

b. Use a level strategy. Use a combination of backlogs, subcontracting, and inventory to handle variations in demand. There should not be a backlog in the final period.

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