Question: 4 80 0 0 0 0 0 Table 10.1 Bart Incorporated manufactures rotary air fans and uses a production planning horizon of one-half year. It

4 80 0 0 0 0 0 Table 10.1 Bart Incorporated

4 80 0 0 0 0 0 Table 10.1 Bart Incorporated manufactures rotary air fans and uses a production planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following. 1 2 3 5 6 Total Inputs Forecasted demand 100 125 120 80 75 70 570 Workforce Level 80 80 80 80 80 480 Part Time 12 12 12 12 12. 12 72 Overtime 0 0 0 0 0 Subcontract 0 0 0 0 0 Derived Beginning inventory 20 12 0 0 0 0 12 Ending inventory 0 0 0 0 0 49 21 37 20 0 Backlog 127 Calculated Workforce level $5 400 400 400 400 400 400 $2,400 Part Time $6 72 72 72 72 72 72. $432 0 0 0 Overtime $7.5 0 0 0 $0 0 0 0 Subcontract $8 0 0 0 $0 Inventory holding 80 30 $5 0 0 0 5 $115 0 980 420 740 400 Back orders $20 0 $2,540 0 2 $477 $5,487 Total $922 $1,452 $1,212 $872 $552 Use the information in Table 10.1. Which one of these trade-offs works to your greatest advantage in terms of reducing costs over the entire planning period? Begin the planning period with 570 units of anticipation inventory and produce nothing in the planning period. Produce units using part-time workers instead of regular-time workers. Use no overtime, subcontracting, or part time in favor of a level regular-capacity plan. Begin with a larger anticipation inventory to avoid backorders completely

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