Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

August 1 , 2 0 2 0 . You would like to construct an aggregate production plan for product PX 2 7 for the four

August 1,2020. You would like to construct an aggregate production plan for product PX27 for the four quarters of 2021.
Cost of regular production =65$u.
Cost of overtime production =97$u.
Inventory holding cost =5$u?qtr.
Cost of increasing regular production =80$u.
Cost of decreasing regular production =90$u.
The regular production in Quarter 4 of 2020 is 1,425u.
The inventory a the beginning of Quarter 1 of 2021 is estimated to be 64u.
The forecasted demand for the four quarters of 2021 are: 1,087,1,316,1,051, and 1,278 units.
You want to use the level production strategy with overtime production.
Furthermore, you will keep inventory as low as possible but stockouts (shortages) must be avoided.
Suppose you keep the quarterly regular production constant at 959 units and add overtime production if necessary.
You must perform the needed calculation and answer the question shown below.
NOTE: Do not use any comma in your answers.
The total cost of overtime production is dollars.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Natural Resource Management Reimagined

Authors: Robert G. Woodmansee

1st Edition

1108740138, 978-1108740135

More Books

Students also viewed these General Management questions