Question: A manufacturing firm would like to develop an aggregate plan for the next quarter. Data related to the demand, capacity and cost are shown below.
A manufacturing firm would like to develop an aggregate plan for the next quarter. Data related to the demand, capacity and cost are shown below. Months Jan Feb March Demand 800 1000 900 Capacity Regular 700 700 700 Subcontracting 150 150 150 Overtime 100 100 100 Start inventory 0 Regular time cost = Rs. 1000/unit, Overtime cost=Rs. 1200/unit, Subcontracting cost = Rs. 1500/unit, Inventory carrying cost = Rs. 50/unit per month. Solve this aggregate planning problem to minimize the total cost
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