Your company plans the next 5 months of production and you will develop the top level (bulk) plan. If possible, you should try to end period 5 with zero inventory.

The costs are given in the table below.

The marketing department says the plan won't have any products up for pre-order at any given time.

Management chooses to follow demand, but will allow up to 2,000 bottles per period using overtime and up to 500 bottles per period using subcontractors

The number of employees per period is given; each employee can produce 2,000 bottles per period

Note: If you have regular shift workers, you must allow them to produce products.

The estimate is given below.

Warehouse B reports you have an initial inventory of 6,000 bottles.

Period	1	2	3	4	5	totals
Guess (bottles)	14.500	15.200	14.900	15.900	15.555	76.055
Number of Employees	7	7	6	6	6
Output
Organised
Shift
subcontractor
Output – Estimate
Inventory
Beginning
Finishing
Average
backlog
Costs
Regular @ $2.90/bottle
Overtime @ $3.45/bottle
Subcontractor @ $4.04/bottle
@ $1,250 per Hiring / Dismissal
Inventory @ $0.55/bottle
Backlog @ $1.00/bottle
Total fee:

Answer rating: 100% (QA)

Answer i Total demand 76055 ii Total Regular production forecast 64000 iii Beginning inventory 6000 ... View the full answer