Question: Consider the following aggregate planning problem for one quarter: Regular Time Overtime Subcontracting Production Capacity/Month 1,000 200 150 Production Cost/Unit 5 7 8 Assume that
Consider the following aggregate planning problem for one quarter:
| Regular Time | Overtime | Subcontracting | |
| Production Capacity/Month | 1,000 | 200 | 150 |
| Production Cost/Unit | 5 | 7 | 8 |
Assume that there is no initial inventory and there is forecasted demand of 1,250 units in each month in the quarter. Carrying cost is $1 per unit per month, and backlogs are not allowed. Use the transportation model to find the optimal solution.
How much excess capacity is there? [ Select ] ["300", "1250", "100", "0"] units
What is the cost of the optimal solution? [ Select ] ["$28,600", "$26,600", "$20,400", "$22,400"]
How many units are actually made by subcontracting?
How many units incur a holding cost? In other words, how many are made in one month and held to meet the demand of a future month?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
