Planners for a company that makes several models of skateboards are about to pre
ID: 452144 • Letter: P
Question
Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information:
They have learned that one person is about to retire from the company. The reduced regular-time output is 280 units per period. Prepare a plan that minimizes cost using subcontracting at a maximum rate of 50 units per period as needed with no overtime. Again, plan for a zero inventory balance at the end of period 6. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Explanation / Answer
Follwing is the cost structure :
Assumption :
Lead time = 0
Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1,800 Output Regular 280 280 280 280 280 280 Subcontract 50 50 50 50 0 Output Forecast 80 80 -20 -120 -220 80 Inventory Beginning Ending 130 260 290 220 0 80 Average 65 130 145 110 0 40 490 Backlog 0 0 0 0 0 0 Costs: Regular 840 840 840 840 840 840 5040 Subcontract Inventory 195 390 435 330 0 120 1470 Backorder 0 0 0 0 0 0 Total $ 6510