Question
A company produces widgets and the aggregate forecasts (units) for the first six months of the following year are as follows: January February March April
A company produces widgets and the aggregate forecasts (units) for the first six months of the following year are as follows:
January
February
March
April
May
June
100
150
300
300
500
150
Develop a level production plan for the six month planning period based on these forecasts.The following additional information is available:
Costs
Regular time production cost R5/unit
Overtime production costR8/unit
Subcontracting production cost R12/unit
Inventory carrying cost (Rand/unit)R3/unit
Regular production capacity300 units/month (no backorders allowed)
Starting inventory0 units
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Equity And Trusts Text Cases And Materials
Authors: Paul S. Davies, Graham Virgo
3rd Edition
0198821832, 978-0198821830
