Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 1: Maxim Trailers (MT) Manufacturers Small Snowmobile And Camping Trailers In Ontario. The Demand For The Camping Trailers Occurs Between January And June Of

 Problem 1: Maxim Trailers (MT) Manufacturers Small Snowmobile And Camping Trailers In Ontario. The Demand For The Camping Trailers Occurs Between January And June Of Each Year (Mostly In Apr And May). Aggregate Demand (In Units) Beyond The Regular Capacity Is: Jan 465 Feb 540 Mar 705 Apr 1020 May 1,140 Jun 630 MT Can Hire Temporary Workers To Meet The Above


image text in transcribed

 

Problem 1: Maxim Trailers (MT) manufacturers small snowmobile and camping trailers in Ontario. The demand for the camping trailers occurs between January and June of each year (mostly in Apr and May). Aggregate demand (in units) beyond the regular capacity is: Jan Feb 465 540 Mar Apr May 705 1020 1,140 Jun 630 MT can hire temporary workers to meet the above requirements. Each temporary worker can. produce 15 units per month. Hiring/training cost is approx. $1,200 per temp worker. Inventory holding cost per camping trailer per month is $30, charged to average inventory level during a month. Before January, MT had no camping trailers on hand, and it desires 180 extra units in inventory at the end of June. Any shortage during a period is backordered at the cost of $200 per camping trailer per month. [15 Marks] a) Develop a level aggregate plan and calculate the total cost b) Develop a chase aggregate plan and calculate the total cost c) Can you improve the chase plan? How? [Note: 180 extra units at the end of June are also desired with the chase strategy.]

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

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions

Question

Describe the term career . AppendixLO1

Answered: 1 week ago