Information for Slid Corporation.
Please show your work
Beginning inventory of the first month = 50
COSTS:
Regular time cost= $120 per unit
Over time cost = $180 per unit
Inventory Holding Cost = $50 per unit per month on average inventory
Back order Cost = $ 200 per unitper month
Average inventory= ( Beg Inv + End Inv)/2
Regular output = 22 units per worker per unit
Over time output = Max of 90 units per month for the entire company.
Ending inventory for the sixth month = 0
Strategy: maintain a level of workforce of 10 workers and use over time
| MONTH |
1 |
2 |
3 |
4 |
5 |
6 |
TOTAL |
| FORESCAST IN UNITS |
400 |
300 |
100 |
150 |
250 |
350 |
1550 |
| OUTPUT: |
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| REGULAR TIME |
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| OVER TIME |
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| SUBCONTRACT |
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| OUTPUT-FORECAST |
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| INVENTORY: |
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| BEGINNING |
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| ENDING |
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| AVERAGE |
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| BACKLOG |
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| OUTPUT COST: |
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| REGULAR TIME |
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| OVER TIME |
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| SUBCONTRACT |
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| INVENTORY COST |
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| BACKORDER COST |
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| TOTAL COST |
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1) What is the back log for the second month?
2) What is the ending inventory for the third month?
3) What is the average inventory for the fifth month?
4) What is the total cost for the third month?
5) What is the total inventory holding cost for this sixth month aggregate plan?
6) What is the total cost for this sixth month aggregate plan?