Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, backorder cost is $20 per unit. inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero. MONTH FORECAST 1 180 2 170 3 140 4 150 5 130 6 150
Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, backorder cost is $20 per unit. inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero. MONTH FORECAST 1 180 2 170 3 140 4 150 5 130 6 150
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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Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time and overtime, and backorders. The plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime capacity is 20 units per month. Overtime cost is $30 per unit, backorder cost is $20 per unit. inventory holding cost is $5 per unit, regular time cost of $20 per unit, and beginning inventory is zero.
| MONTH | |
| 1 | 180 |
| 2 | 170 |
| 3 | 140 |
| 4 | 150 |
| 5 | 130 |
| 6 | 150 |
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