Refer to Solved Problem 1. Prepare two additional aggregate plans. Call the one in the solved problem plan A. For plan B, hire one more worker at a cost of $ 200. Make up any shortfall using subcontracting at $ 8 per unit, with a maximum of 20 units per period (i. e., use subcontracting to reduce back orders when the forecast exceeds regular output). Note that the ending inventory in period 9 should be zero. Therefore, Total forecast Total output Quantity subcontracted. An additional constraint is that back orders cannot exceed 80 units in any period. For plan C, assume no workers are hired (so regular output is 200 units per period instead of 210 as in plan B). Use subcontracting as needed, but no more than 20 units per period. Compute the total cost of each plan. Which plan has the lowest cost? Assume regular monthly production regular capacity.
Answer to relevant QuestionsRefer to Solved Problem 1. Suppose another option is to use part- time workers to assist during seasonal peaks. The cost per unit, including hiring and training, is $ 11. The output rate is 10 units per worker per period for ...Refer to Example 3. Suppose that regular- time capacity will be reduced to 440 units in period 3 to accommodate a companywide safety inspection of equipment. What will the additional cost of the optimal plan be as compared ...Prepare a schedule like that shown in Figure 11.12 for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting inventory is 20 units. ...How is safety stock included in a material requirements plan? Suppose you work for a furniture manufacturer, one of whose products is the chair depicted in Figure. Finished goods inventory is held in a central warehouse in anticipation of customer orders. Finished goods are controlled ...
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