Question: You would like to construct an aggregate production plan for product LS247 for the next four quarters. Cost of regular production = 65 $/u Cost
You would like to construct an aggregate production plan for product LS247 for the next four quarters. Cost of regular production = 65 $/u Cost of overtime production 90 $/ Inventory holding cost = 5 $/u/qtr Cost of increasing production = 80 $/u Cost of decreasing production = 90 $/u Subcontracting cost = 115 $/u Stockout cost = 130 $/u Previous quarter's regular production 2250 u Beginning inventory level = 100 u The forecasted demand for the next four quarters are: 2400, 2800, 2450, and 2300 units. Suppose that you want to set the quarterly regular production constant at 2500 units and to use overtime if necessary. You do not want to use any subcontract. Furthermore, you will keep inventory as low as possible. Stockouts are not allowed. You must perform the calculation and answer the questions shown below. NOTE: Do not use any comma in your answers. The beginning inventory in quarter 2 is units. The beginning inventory in quarter 3 is units. The overtime production in quarter 2 is units. units. The overtime production in quarter 3 is The overtime production in quarter 4 is units. Total cost of increasing regular production is $ Total cost of decreasing regular production is 5 Total cost of holding inventory is '$ Total cost of overtime production is units
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