Assignment:
Q: A planner has developed an aggregate forecast for demand for the next 6 months as shown below:
| Month |
Jan |
Feb |
March |
Apr |
May |
June |
| Forecast |
6000 |
5000 |
6000 |
5500 |
6000 |
7000 |
Use the following information to develop aggregate plans:
Regular production cost: $10.00 per case
Regular production capacity: 5500 cases/month
Overtime production cost: $15.00 per case
Subcontracting cost: $20.00 per case
Holding/Carrying cost: $2.00 per case per month
Develop an aggregate production plan for each of the following guidelines and compute the total cost for each plan.
Use level-capacity production and supplement with inventory and subcontracting as needed.
Use a combination of inventory, regular production, overtime (maximum 200 cases per month), and subcontracting (maximum 300 cases per month) as needed.
Use regular production, inventory and overtime (500 cases maximum per month).