Question: A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan using the template below to meet

A manager has prepared a forecast of expected
A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan using the template below to meet this demand given the following Information: A stable production rate is used each month by scheduling 10 workers with an output rate of 15 units each. The company doesn't utilize overtime or subcontracting but does keep a backlog and extra inventory on hand at times. Backorders are costed at the rate of $10 per unit per month. Inventory holding costs are $3 per unit per month in average inventory. Regular time cost is $5 per unit and beginning inventory is zero. Costs: Output Regular time: Overtime: Regular production output: Overtime production output: Inventory carrying cost: Average Inventory = (beginning Inventory + ending Inventory)/2 Subcontracting: Backorders: Aggregate Planning Policy: 3 1 120 2 140 4 180 5 165 Total 6 135 160 Month Forecast Output: Regular time Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Output Cost: Regular Time Overtime Subcontract Inventory Cost Backorder Cost

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