Question: Develop the aggrgate plan based on the given data to find results for each of the 6 periods (Regular Time Production, Overtime Production, Average Inventory,
Use the information below to work all the problems in this section. Work the problem very carefully and pay attention to the details. Values build on values so once you make a mistake, it is likely that all the folloting values will be incorrect. Demand for the next six periods: 2,000;2,000;3,500;4,000;5,000;2,100 Maximum regular time production: 2,500 Maximum overtime production: 2,000 They use the chase strategy. If there is not enough production capacity to meet demand, where possible, they will produce earlier to build up inventory to meet that demand. The following costs are per unit: Regular time: $4.00 Overtime: $7.50 Inventory per period: $2.85 Backorders: $20.00 Develop the aggregate plan
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
