Problem $11-7($Static$)$

SummerFun, Incorporated, produces a varlety of recreation and lelsure products. The production manager has developed an aggregate forecast:

Use the following information to develop aggregate plans.

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Regular production cost

Overtime production cost

Regular capacity

Overtime capacity

Subcontracting cost

Subcontracting capacity

Holding cost

Backorder cost

Beginning inventory

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$ $80$ per unit

$ $120$ per unit

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$8\}\backslash$mathrm$\{$ units per month

$ $140$ per unit

$12$

$ $10$ per unit per month

$$20$

$0$ units

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Develop an aggregate plan using each of the following guldelines and compute the total cost for each plan. Hint: You will need extra output in April and August to accommodate demand in the following months.

a$.$ Use regular production. Supplement using inventory, overtime, and subcontracting as needed. No backlogs allowed.

Note: Round your Average values to $1$ decimal place. Negatlve amounts should be Indlcated by a minus sign. Leave no cells blank $-$ be certain to enter $"$O$"$ wherever required. b$.$ Develop an aggregate plan using the same strategy from part a$,$ except that backlogs are allowed here. There should be no backlog remaining at the end of September. Hint: Use a maximum backlog of $5$ in any given month. You will need to develop a set of rules regarding which capacity option $($regular$,$ overtime, subcontracting$)$ is always preferable, and regarding the timing of these options $($I$.$e$.,$ is it cost$-$effective to buld ahead $($and thus carry inventory$)$ or to incur a backlog?$).$

Note: Round your Average values to $1$ decimal place. Negative amounts should be Indicated by a minus sign. Leave no cells blank $-$ be certaln to enter $"0"$ wherever required.