A small company produces a variety of recreational and leisure vehicles. The marketing manager has developed the
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A small company produces a variety of recreational and leisure vehicles. The marketing manager has developed the following aggregate forecasts:
Regular labour cost………………………$240 per unit
Overtime labour cost……………………..$360 per unit
Regular capacity.....40 units per month, using 5 workers
Overtime capacity…………………….8 units per month
Holding cost…………………….$30 per unit per month
Backorder cost…………………$100 per unit per month
Beginning inventory…………………………….0 units
Desired ending inventory……………………….0 units
Hiring cost………………………….$2,000 per worker
Layoff cost…………………………$1,000 per worker
Develop the minimum cost aggregate production plan and compute its total cost.
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Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
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