Question: A large Saskatchewan feed mill, B. Swart Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January,
A large Saskatchewan feed mill, B. Swart Processing, prepares its 6-month aggregate plan by forecasting demand for 50-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 leftover from the previous year and backorders are not permitted. It projects that capacity (during regular hours) for producing bags of feed will remain constant until the end of April, and then increase to bags per month when a planned expansion is completed on May 1. 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 demandbut can provide only bags total during the 6-month period. Cost data are as follows: Regular-time cost per bag (until April 30) $ Regular-time cost per bag (after May 1) $ Overtime cost per bag (during entire period) $ Cost of outside purchase per bag $ Carrying cost per bag per month $ Develop a 6-month production plan for the feed mill using the transportation method. (Enter your responses as whole numbers. Use the initial solution if it is optimal.) Supply from Demand for January February March April May June (Dummy) Excess Supply Jan Regular time $ $ $ $ $ $ $0 nothing nothing nothing nothing nothing nothing nothing Overtime $ $ $ $ $ $ $0
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