Question
Problem 11-9 (Static) Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six
Problem 11-9 (Static) Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following Information. MONTH 1 2 3 4 5 6 Demand 160 150 160 180 170 140 Capacity Regular 150 150 150 150 160 160 Overtime 10 10 0 10 10 10 Cost Per Unit Regular time $50 Overtime 75 Subcontract 80 Inventory holding, per 4 month Subcontracting can handle a maximum of 10 units per month. Beginning Inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed. Regular capacity = Regular production. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required.) Period 2 4 5 Total Forecast 160 150 160 180 170 140 960 Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Regular Overtime Subcontract Inventory Backlog Total
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