Planners for a company that makes several models of skateboards are about to pre
ID: 452192 • 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.)
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:
Explanation / Answer
MONTH 1 2 3 4 5 6 Demand 200 200 300 400 500 200 Capacity Regular 280 280 280 280 280 280 Cost Per Unit Regular time $5 Overtime $7 Subcontract $7 Inventory, per period $3 Back order $5 Period 1 2 3 4 5 6 Total Forecast (A) 200 200 300 400 500 200 1800 Output Regular (B) 150 230 280 280 280 280 1500 Overtime (C ) 0 0 0 0 0 0 0 Subcontract (D = A-B-C), if >0 50 50 50 50 50 50 300 Output- Forecast ( E) 200 280 330 330 330 330 1800 Inventory Beginning (Last period ending) 0 0 80 110 40 0 230 Ending (E - A, if positive) 0 80 110 40 0 0 230 Average 0 40 95 75 20 0 230 Backlog 0 0 0 0 130 0 130 Costs: Regular (Regular Output * $5) $750 $1,150 $1,400 $1,400 $1,400 $1,400 $7,500 Overtime (Overtime Output * $7) $0 $0 $0 $0 $0 $0 $0 Subcontract (Subcontract Output * $7) $350 $350 $350 $350 $350 $350 $2,100 Inventory (Average Inventory * $3) $0 $120 $285 $225 $60 $0 $690 Backlog (Backlog * $5) $0 $0 $0 $0 $650 $0 $650 Total $1,100 $1,620 $2,035 $1,975 $2,460 $1,750 $10,940