Question: he manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no

he manager wants to use a level strategy with a

he manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers.

(a) What is the level total Production Rate? Answer units

(b) What is the maximum quantity subcontracted and in which period? Quantity-Answer and Period-Answer

(d) What is the total regular production cost? $Answer

(e) What is the total overtime cost? $Answer

(f) What is the total subcontracting cost? $Answer

(g) What is the total inventory carrying cost? $Answer

(h) What is the total backorder cost? $Answer

(i) What is the total aggregate plan cost? $Answer

The production manager at Zam Tech has developed following aggregate forecast of its products: Period 1 2 3 4 5 6 Forecast 55 40 50 7 51 44 60 50 The manager has also assembled the following information to help in the development of the aggregate plans: Regular production cost $80.00/unit Overtime production cost $120.00/unit Subcontracting cost $140.00/unit Holding cost $10.00/unit/month Backorder cost $20.00/unit Regular capacity 40 units/month Overtime capacity 8 units/month Subcontracting capacity 12 units per month The manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers

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