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Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is
Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 150 units per month (Cost per Unit = $30 ). Overtime is limited to a maximum of 20 units per month (Cost per Unit -S45). Units purchased from the subcontractor (Cost per Unit = $54 ) cannot exceed 60 per month and the total purchases from the subcontractor over the 6 month period cannot be over 220 units. Backorders cannot exceed 40 units in any given month (Cost per Unit = $4 ) and must be no more than 40 in Period 6. Average Inventory Holding cost per Unit - S8. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below. Month 4 6 Total Regular Outp Overtime Output Subcontract Beginning Invento Total Available for Sale Less Forecast Plus Backlog-Current Period Less Backlog-Previous Period Ending Invento Average Invento 40 220 170 270 180 170 150 Hint: Range (6010,6190) Total Cost Month 1 - Total Cost Month 2- Total Cost Month 3- Hint: Range (5320,5470) Total Cost Month 4- Hint: Range (5500,5650) Total Cost Month 5- Total Cost Month 6 = Total Cost All Periods- Answer Format: No Dollar (S) signs or commasAnswers should be whole numbers. A Hint: Range (36520,36720)
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