Question: Kindly, explaining is needed via solving it manually and in excel : Solve this Aggregate Planning Problem by minimizing the cost of mathcing the capacity
Kindly, explaining is needed via solving it manually and in excel :
Solve this Aggregate Planning Problem by minimizing the cost of mathcing the capacity vaious options in various periods to the future demand?
Find inventory cost, regular time cost, overtime cosr and subcontract cost, and the total cost?
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| Sales Period | ||
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| Mar | Apr | May |
| Demand | 700 | 700 | 1100 |
| Capacity: |
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| Regular Time | 700 | 700 | 700 |
| OverTime | 100 | 100 | 100 |
| Subcontracting | 200 | 200 | 100 |
| Begening inventory is zero | 0 |
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| Cost | ||
| Regular Time | $50 | per tire |
| OverTime | $60 | per tire |
| Subcontracting | $80 | per tire |
| Carrying Cost | $5 | per tire per month |
Answer
| Demand | ||||||
| Supply From | Period 1 ( Mar) | Period 2 ( Apr) | Period 3 ( may) | Unused Capacity ( Dummy) | ||
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| Beginning Inventory | 0 | ||||
| Period 1 | Regular Time | 700 | 200 |
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| OverTime |
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| Subcontracting |
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| Period 2 | Regular Time |
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| OverTime |
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| Subcontracting |
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| Period 3 | Regular Time |
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| OverTime |
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| Subcontracting |
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| Total Demand |
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| PERIOD 1 | PERIOD 3 | PERIOD 3 |
| Inventoy Cost | |||
| Regular Time Cost | |||
| Overtime Cost | |||
| Subcontracting | |||
| Total | |||
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