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Mathematics, 15.04.2020 17:16 chandranewlon
A manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a forecast of expected demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4 and again in period 8, as can be seen from the following forecasts:
Period 1 2 3 4 5 6 7 8 9 Total
Forecast 190 230 260 280 210 170 160 260 180 1,940
The department now has 20 full-time employees, each of whom can produce 10 units of output per period at a cost of $6 per unit. Inventory carrying cost is $5 per unit per period, and backlog cost is $10 per unit per period. The manager is considering a plan that would involve hiring two people to start working in period 1, one on a temporary basis who would work only through period 5. This would cost $500 in addition to unit production costs.
Prepare an aggregate plan that uses overtime ($9 per unit, maximum output 25 units per period) and inventory variation. Try to minimize backlogs. The ending inventory in period 9 should be zero, and the limit on backlogs is 60 units per period. Note that Total output = Total regular output + Overtime quantity. Compute the total cost of your plan. Assume 20 full-time workers. (Omit the "$" sign in your response.)
Total cost $
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A manager is attempting to put together an aggregate plan for the coming nine months. She has obtain...
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