Question
compute the total cost for each aggregate plan using these unit costs: regular output= $40 overtime = $50 Subcontract = $60 Average balance inventory=$10 A)
compute the total cost for each aggregate plan using these unit costs: regular output= $40 overtime = $50 Subcontract = $60 Average balance inventory=$10
A)
month jan feb mar apr may jun
forecast output 300 320 320 340 320 320
regular 300 300 300 300 300 300
overtime 20 20 20 20 20 20
subcontract 0 0 0 0 0 0
output forecast
inventory
beginning
ending
average
b)
month jul aug sep oct nov dec
forecast 320 340 360 380 400 400
output
regular 300 300 300 300 300 300
overtime 20 20 20 20 30 30
subcontract 20 30 40 40 60 70
output forecast
inventory
beginning
ending
average
c) refer to part b) after complaints from some workers about working overtime every month during the first half of the year, the manager is now considering adding some temporary workers for the second half of the year. which would increase regular output to a steady 350 units a month, not using any overtime, and using subcontracting to make up needed output. determine the total cost of that plan.
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