Question: Millennium Electronics produces two air conditioner models, Model A and Model TL . The demand for air conditioners for these two models for the next
Millennium Electronics produces two air conditioner models, Model A and Model TL
The demand for air conditioners for these two models for the next months is provided in the following table.
tableMonthDemand air conditions
Currently, the company has workers, and each worker produces air conditions per month. The operations manager is about to prepare an aggregate production plan that covers the next six months. The opening inventory is air conditions. The cost and production information is as follows.
Cost Data
Regulartime labour cost
Overtime labour cost
Subcontracting cost
$ per air condition
$ per air condition
$ per air condition
Holding cost
Hiring cost
Firing cost
$ per air condition per month
$ per worker
$ per worker
Production: Maximum overtime output is air conditioners per month
The manager would like to make an aggregate planning by keeping initial workforce level for next months, and using overtime and subcontract as needed. The manager also would like to use initial inventory as early as possible, ensure no shortages for any month, and keep air conditions in inventory in the end of month in this plan. Please use the table in the "Data & Tables fileTerm Test II file sheet Q on Brightspace to develop an aggregate plan. What is the total coct of thic icmt
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