5. Neil Special Pottery, LLC has decided to use a regular output of 800 units per month for this year. They can use overtime
5. Neil Special Pottery, LLC has decided to use a regular output of 800 units per month for this year. They can use overtime up to 80 units per month and use subcontracting for the remaining units to match the demand forecast. They figure out that the overtime cost is 1 times their regular shift cost of $20 per unit. They have an outsourced supplier who offers their pottery products at $90 per unit. Their accounting department has informed that the average balance inventory cost is $20 and materials cost $40 per unit. Develop an aggregate plan with appropriate costs for the following demands: Jan Feb Mar Apr May Jun Forecast Demand 760 800 840 880 860 960
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Step: 1
To develop an aggregate plan for Neil Special Pottery LLC with the provided forecast demands and costs well analyze the best combination of regular pr...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
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