Aggregate Planning

Use a level strategy. Use a combination of backlogs, subcontracting, and inventory to handle variations in demand.

PLEASE SHOW THE COMPLETE SOLUTION BASED ON THE GIVEN.

Jan 50 Month Forecast Regular capacity Regular capacity Regular production cost Overtime production cost Subcontract production cost Overtime Capacity Subcontract Capacity Holding Cost Back order cost Beginning inventory Feb 44 Mar Apr 55 60 5 workers 40 units per month $80 per unit $120 per unit $140 per unit 8 units per month 12 units per month $10 $20 per unit 0 units May 50 Jun 40 Jul 51 Total 350