A manager would like to know the total cost of an aggregate production plan that meets the

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A manager would like to know the total cost of an aggregate production plan that meets the forecasts below using a steady regular production rate of 200 units a month, a maximum of 20 units per month of overtime, and subcontracting as needed to make up any shortages. The unit costs are:

Regular production= $35

Overtime = $70

Subcontracting = $80

Month 1 3 4 5 6 Forecast 230 200 240 240 250 240

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Operations Management

ISBN: 9781259270154

6th Canadian Edition

Authors: William J Stevenson, Mehran Hojati, James Cao

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