11-5 -2-2 http://ezto.mhedu Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a normal capacity of 130 engines per month. Normal output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. Month 1 Forecast 2 3 4 5 6 7 8 Total 120 135 140 120 125 125 140 135 1,040 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period Forecast Output Regular Overtime Subcontrac t 1 120 2 135 3 140 4 120 5 125 6 125 7 140 Output Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular $ Overtime Subcontrac t Inventory Backorder Total $ b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $90 per engine per month. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period Forecast 1 120 Output Regular Overtime Subcontract Output Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular Overtime Subcontract Inventory $ 2 135 3 140 4 120 5 125 6 125 140 Backorder $ Total Problem 11-6 -2-2 http://ezto.mhedu Manager Chris Channing of Fabric Mills, Inc., has developed the forecast shown in the table for bolts of cloth. The figures are in hundreds of bolts. The department has a normal capacity of 275(00) bolts per month, except for the seventh month, when capacity will be 250(00) bolts. Normal output has a cost of $40 per hundred bolts. Workers can be assigned to other jobs if production is less than normal. The beginning inventory is zero bolts. Month Forecast 1 2 3 4 5 6 7 Total 250 300 250 300 280 275 270 1,925 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $60 per hundred bolts. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period 1 2 3 4 5 6 Forecast 250 Output Regular Overtime Subcontract Output Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular $ Overtime Subcontract Inventory Backorder Total $ 300 250 300 280 275 27 b. Would the total cost be less with regular production with no overtime, but using a subcontractor to handle the excess above normal capacity at a cost of $50 per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $2 per hundred bolts. (Round your Average values to 1 decimal place. Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period Forecast Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average 1 250 2 300 3 250 4 300 5 280 6 275 27 Backlog Costs: $ Regular Overtime Subcontract Inventory Backorder $ Total Problem 11-9 -2-2 http://ezto.mhedu Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information: Demand Capacity 1 160 2 150 MONTH 3 4 160 180 5 170 6 140 Regular Overtime 150 10 Cost Per Unit Regular time Overtime Subcontract Inventory, per period 150 10 150 0 150 10 160 10 160 10 $50 75 80 4 Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period Forecast Output Regular Overtime 1 160 150 10 2 3 4 5 6 Tota 150 160 180 170 140 150 10 150 0 150 10 160 10 160 10 Subcontract OutputForecast Inventory Beginning Ending Average Backlog Costs: Regular Overtime Subcontract Inventory $ $ Backlog Total $ $ Problem 11-14 -2-2 http://ezto.mhedu Refer to Example 3 in the textbook. Given the following information set up the problem in a transportation table and solve for the minimum-cost plan: (Omit the "$" sign in your response.) Demand Capacity Regular Overtime Subcontract Beginning inventory Costs Regular time Overtime Subcontract Inventory carrying cost Back-order cost 1 550 500 50 120 100 $ $ $ $ $ PERIOD 2 700 500 50 120 3 750 500 50 100 60 per unit 80 per unit 90 per unit 1 per unit per month 3 per unit per month Minimum total cost $ Problem 11-19 -2-2 http://ezto.mhedu Prepare a master production schedule for industrial pumps in the manner of the following table. Use the MPS rule to "schedule production when the projected on-hand inventory would be less than 10 without production." Suppose that a production lot size of 70 pumps is used. (Leave no cells blank - be certain to enter "0" wherever required.) June 64 Forecast Customer orders (committed) 1 30 33 2 30 20 3 30 10 4 5 30 4 40 2 Projected on-hand inventory MPS ATP