Question: Given the projected demands for the next six months, prepare a Chase strategy aggregate plan that uses regular time and subcontract. The plan must wind
Given the projected demands for the next six months, prepare a Chase strategy aggregate plan that uses regular time and subcontract. The plan must wind up with no units in ending inventory in period 6. Regular time capacity is 150 units per month. Subcontract cost is $50 per unit and regular time cost is $20 per unit. Beginning inventory is zero. Workers can be re-assigned to other production lines without any additional cost.
What is the total cost of this plan?
$20,000
$19,000
$17,600
$19,800
$18,00
Month Forecast 180 170 140 130 150Step by Step Solution
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