The manufacturer of outdoor paints at Jebel Ali, Dubai, has collected the following information regarding the capacities
Question:
The manufacturer of outdoor paints at Jebel Ali, Dubai, has collected the following information regarding the capacities (in units) and demand forecast for the next 9 months.
MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP Demand 2,000 1,800 2,000 1,800 2,000 1,600 1,400 2,000 1,500 Regular-time capacity 1,360 1,292 1,428 1,360 1,428 1,292 1,360 1,428 1,292 Overtime capacity 340 323 357 340 357 323 340 357 323 Subcontract capacity 400 400 400 400 400 400 400 400 400 Cost data are as follows:
Regular-time cost per gallon AED 200 Overtime cost per gallon AED 220 Subcontracting cost per gallon AED 250 Carrying cost per gallon per month AED 20
a) Develop a chase plan to meet the monthly demand using regular-time production, overtime, and subcontracting.
b) If it is possible to use inventory, prepare another plan to meet the monthly demand using regular-time production, overtime, and subcontracting.
c) Compare the results of the two plans.
Step by Step Answer:
Operations Management Sustainability And Supply Chain Management
ISBN: 9781292295039
13th Global Edition
Authors: Jay Heizer, Barry Render, Chuck Munson