Question
Need Help on this Supply Chain Problem! Revisit Problem 22 on the Bull Grin Company. Some cost and demand parameters have changed. Producing 1,000 pounds
Need Help on this Supply Chain Problem!
Revisit Problem 22 on the Bull Grin Company. Some cost and demand parameters have changed. Producing 1,000 pounds of supplement now costs $830 on regular time and $910 on overtime. No additional cost is incurred for unused regular-time, overtime, or subcontractor capacity. Overtime is limited to production of a total of 20,000 pounds per quarter. In addition, subcontractors can be hired at $1,000 per thousand pounds, but only 30,000 pounds per quarter can be produced this way.
The current level of inventory is 40,000 pounds, and management wants to end the year at that level. Holding 1,000 pounds of feed supplement in inventory per quarter costs $100. The latest annual forecast is shown in Table D.3.
D.3
| PerIod | |||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | total | |
| Demand (pounds) | 130,000 | 400,000 | 800,000 | 470,000 | 1,800,000 |
| Capacities (pounds) | |||||
| Regular time | 390,000 | 400,000 | 460,000 | 380,000 | 1,630,000 |
| Overtime | 20,000 | 20,000 | 20,000 | 20,000 | 80,000 |
| Subcontract | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 |
Use the transportation method of production planning in POM for Windows to find the optimal production plan and calculate its cost, or use the spreadsheet approach to find a good production plan and calculate its cost. (Please show all calculations)
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The Oxford Handbook Of Entrepreneurial Finance
Authors: Douglas Cumming
1st Edition
0195391241, 978-0195391244
