Question: Using the given information, produce an aggregate plan and determine the following. Period Forecast 1 180 2 170 3 140 4 150 5 130 6



Using the given information, produce an aggregate plan and determine the following.


Period Forecast
1 180
2 170
3 140
4 150
5 130
6 150


Regular time: $20 per unit (150 units per period maximum)
Overtime: $30 per unit (20 units max per period maximum)
Subcontracting: None available
Beginning Inv: None
Holding cost: $5 per unit per period
Backorder cost: $20 Per unit per period


  1. What is total forecasted demand?
  2. What is total regular time capacity?
  3. How should overtime capacity be utilized?
  4. What are total regular time costs?
  5. What are total overtime costs?
  6. What are total carrying costs?
  7. What are total backorder costs?
  8. What are total costs for each period?
  9. What are total costs for the six periods?
  10. If hiring cost is $500 and firing cost if $400, would it be more economical on a per unit basis to use overtime or to hire and fire a temporary person (who can produce a maximum of 30 units per period)? What would be the difference in total costs for the six periods?





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