Question: 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
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.
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Given Plan A Refer back to the solution in Solved Problem 1 consider the solution for that problem to be Plan A The total cost of Plan A was 20550 The given information in Solved Problem 1 was Current ... View full answer
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