Question: A large Saskatchewan feed mill, B . Swart Processing, prepares its six - month aggregate plan by forecasting demand for 5 0 - pound bags
A large Saskatchewan feed mill, B Swart Processing, prepares its sixmonth aggregate plan by
forecasting demand for pound bags of cattle feed as follows: January, bags; February,
; March, ; April, ; May, ; and June, The feed mill plans to begin the new
year with no inventory left over from the previous year, and backorders are not permitted. It
projects that capacity during regular hours for producing bags of feed will remain constant at
until the end of April, and then increase to bags per month when a planned expansion is
completed on May Overtime capacity is set at bags per month until the expansion, at which
time it will increase to bags per month. A friendly competitor in Alberta is also available as a
backup source to meet demand but can provide only bags total during the sixmonth period.
Develop a sixmonth production plan for the feed mill using the transportation method.
Cost data are as follows:
Regulartime cost per bag until April $
Regulartime cost per bag after May $
Overtime cost per bag during entire period $
Cost of outside purchase per bag $
Carrying cost per bag per month $
Please provide a solution for this :)
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