Question: Mousetraps. A company faces the aggregate planning problem shown in the table below. The cost of regular production is $ 1 5 per unit, the
Mousetraps.
A company faces the aggregate planning problem shown in the table below. The cost of regular production is $ per unit, the cost of producing the same unit on overtime is $ the cost of subcontracting is $ per unit, and the cost of carrying a unit in inventory from one month to the next is $
July August September October November
Forecast
Beginning Inventory
Regular Time
Overtime
Subcontracting
Ending Inventory
The labor contract at the plant prohibits both overtime and subcontracting output to exceed units in any fivemonth window. The plant capacity is units per day produced using two shifts and the plant runs seven days a week. By policy, management wants to avoid stockouts.
Develop an aggregate plan for this scenario and solve it using Solver.
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