Question: The information below shows an aggregate production plan for ABC Company for the first 6 months of 2020. Please use the provided information carefully and

The information below shows an aggregate
The information below shows an aggregate production plan for ABC Company for the first 6 months of 2020. Please use the provided information carefully and complete the plan using a chase strategy allowing (vertime , subcontracting and backorders. The company does not want to fire/hire workers. Any backordered demand will be met in July 2020. Average inventory is equal to the average of beginning inventory and ending inventory. Jan Month Forecast (D) Regular capacity (P:) Overtime Capacity (0) Subcontracting Capacity (S.) 320 300 20 20 Feb 340 300 20 30 March 360 300 20 40 April 380 300 20 40 May 500 300 30 60 June 400 300 30 70 40 Beginning inventory (I) Units produced in regular time Units produced in overtime Units subcontracted Ending inventory Number of units backordered (B) Average inventory Average inventory cost Regular Production cost Overtime Production cost Subcontracting cost Backorder cost Total cost of period Cost of Regular capacity Cost of Overtime Capacity Cost of Subcontracting Inventory holding cost Backorder cost S40 per unit sso per unit $60 per unit Sto per unit $15 per unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!