Dwayne Cole, owner of a Florida firm that manufactures display cabinets, develops an 8-month aggregate plan....

 

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Dwayne Cole, owner of a Florida firm that manufactures display cabinets, develops an 8-month aggregate plan. Demand and capacity (in units) are forecast as follows: Сарacity Source (units) Jan. Feb. Mar. Apr. May June July Aug. Regular time 220 245 290 300 295 290 300 310 Overtime 25 24 28 24 30 26 30 30 Subcontract 12 16 15 17 17 19 14 20 Demand 245 284 323 307 325 318 340 360 The cost of producing each unit is $1,000 on regular time, $1,200 on overtime, and $1,800 on a subcontract. Inventory carrying cost is $200 per unit per month. There is no beginning or ending inventory in stock, and no backorders are permitted from period to period. Let the production (workforce) vary by using regular time first, then overtime, and then subcontracting. a) Set up a production plan that minimizes cost by producing exactly what the demand is each month. This plan allows no backorders or inventory. What is this plan's cost? Set up a production plan. (Enter your responses as whole numbers.) Month Regular time Overtime Subcontract Shortage Demand Jan. 245 Dwayne Cole, owner of a Florida firm that manufactures display cabinets, develops an 8-month aggregate plan. Demand and capacity (in units) are forecast as follows: Сарacity Source (units) Jan. Feb. Mar. Apr. May June July Aug. Regular time 220 245 290 300 295 290 300 310 Overtime 25 24 28 24 30 26 30 30 Subcontract 12 16 15 17 17 19 14 20 Demand 245 284 323 307 325 318 340 360 The cost of producing each unit is $1,000 on regular time, $1,200 on overtime, and $1,800 on a subcontract. Inventory carrying cost is $200 per unit per month. There is no beginning or ending inventory in stock, and no backorders are permitted from period to period. Let the production (workforce) vary by using regular time first, then overtime, and then subcontracting. a) Set up a production plan that minimizes cost by producing exactly what the demand is each month. This plan allows no backorders or inventory. What is this plan's cost? Set up a production plan. (Enter your responses as whole numbers.) Month Regular time Overtime Subcontract Shortage Demand Jan. 245

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Solution Decision variables as shown in figl in green How much to ... View the full answer