1. The Adirondack Supply Company produces two major product families, group A and group B, both of which can be inventoried. The average cost to hold a unit of group A in inventory is $2 per month and for group B it is $4. The company has the following forecast of demand for the next 6 months.

The hours required to process a typical unit of each product group in the three major departments of the company are:

a. Determine the load profile for department X if both groups of products are produced in the quantities forecasted.

b. Since it costs twice as much to hold a unit of B, Mr. Donald, who does the master scheduling, has decided to produce the number of B’s that were forecast in each month. He wants to schedule production of group A products so that the total work load in department X will be uniform over the 6-month horizon. Develop a schedule that achieves these goals.

Transcribed Image Text:

Month GROUP 1 2 1 4 A 800 650 800 900 800 850 B 425 300 500 500 400 500