Maple Leaf Foundary, owned by Ahmet Satir, produces cast-iron ingots according to a 3-month capacity plan. The

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Maple Leaf Foundary, owned by Ahmet Satir, produces cast-iron ingots according to a 3-month capacity plan. The cost of labor averages $100 per regular shift hour and $140 per overtime (O.T.) hour. Inventory carrying cost is thought to be

$4 per labor-hour of inventory carried. There are 50 direct laborhours of inventory left over from March. For the next 3 months, demand and capacity (in labor-hours) are as follows:

CAPACITY MONTH REGULAR LABOR

(HOURS)

O.T. LABOR

(HOURS) DEMAND April 2,880 355 3,000 May 2,780 315 2,750 June 2,760 305 2,950 Develop an aggregate plan for the 3-month period using the transportation method. lop52

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Operations Management Sustainability And Supply Chain Management

ISBN: 9781292295039

13th Global Edition

Authors: Jay Heizer, Barry Render, Chuck Munson

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