Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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 30 units per month (Cost per Unit =$45 ). Units purchased from the subcontractor (Cost per Unit =$54) cannot exceed 70 per month and the total purchases from the subcontractor over the 6 month period cannot be over 270 units. Backorders cannot exceed 50 units in any given month (Cost per Unit =$5 ) and must be no more than 10 in Period 6. Average Inventory Holding cost per Unit =$10. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below. Required: Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost Solution. Total Cost Month 1= A) Hint: Range (6430 ,6460) Total Cost Month 2= A Hint: Range (6370 ,6470) Total Cost Month 3= A. Total Cost Month 4= Total Cost Month 5= ,4540) Total Cost Month 6= Total Cost All Periods = A Hint: Range (38810 ,39810) Answer Format: No Dollar (\$) signs or commas -.- Answers should be whole numbers

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

CIA Part 1 Essentials Of Internal Auditing 2022

Authors: MUHAMMAD ZAIN

1st Edition

B09PHFC28N, 979-8794951356

More Books

Students also viewed these Accounting questions