Chapter $13$ Aggregate Planning

Planners for a company that makes several models of skateboards are about to prepare the aggregate

plan that will cover six periods. They have assembled the following information:

Period $123456$ Total

Forecast $2002003004005002001800$

Costs

Output

Regular time: $=$ $$2$ per skateboard

Overtime $=$ $$3$ per skateboard

Subcontract $=$ $$6$ per skateboard

Inventory $=$ $$1$ per skateboard per period

Back orders $=$ $$5$ per skateboard per period

Example $1$: They want to evaluate a plan that uses a steady rate of regular$-$time output. Overtime and

subcontracting are not used because they want steady output. They intend to start with zero inventory

on hand in the first period. Prepare an aggregate plan and determine its cost using the stated

information. There are $15$ workers, and each can produce $20$ skateboards per period. solve using an aggregate planning template