Compute the total cost for each aggregate plan using these unit costs:

Regular output = $40

Overtime = $50

Subcontract = $60

Average Balance inventory = $10

a.

b.

c. After complaints from some workers about working overtime every month during the first half of the year, the manager is now considering adding some temporary workers for the second half of the year, which would increase regular output to a steady 350 units a month, not using any overtime, and using subcontracting to make up needed output. Determine the total cost of that plan.

Transcribed Image Text:

Month Forecast Output Regular Overtime Subcontract Output-Forecast Inventory Beginning Ending Average Jan 300 300 20 Mar Apr May Jun 340 320 320 300 300 20 20 Feb 320 320 300 300 300 20 20 20 0 0 0 0 0 0 Month Forecast Output Regular Overtime Subcontract Output-Forecast Inventory Beginning Ending Average Jul 320 300 20 20 Aug Sep Oct Nov Dec 340 360 380 400 400 300 20 30 300 300 20 20 40 40 300 300 30 30 60 70 Month Forecast Output Regular Overtime Subcontract Output-Forecast Inventory Beginning Ending Average Jan 300 300 20 Mar Apr May Jun 340 320 320 300 300 20 20 Feb 320 320 300 300 300 20 20 20 0 0 0 0 0 0 Month Forecast Output Regular Overtime Subcontract Output-Forecast Inventory Beginning Ending Average Jul 320 300 20 20 Aug Sep Oct Nov Dec 340 360 380 400 400 300 20 30 300 300 20 20 40 40 300 300 30 30 60 70

Answer rating: 100% (QA)

Prepare an aggregate plan using the following information Cost of regular output per unit 40 Overtime cost per unit 50 Subcontract cost per unit 60 Co... View the full answer