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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
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. 1 160 2 150 MONTH 3 4 160 180 5 170 6 140 Demand Capacity Regular Overtime 150 150 10 150 10 150 10 160 10 160 10 0 Cost Per Unit Regular time $50 Overtime 75 Subcontract 80 Inventory holding, per 4 month Click here for the Excel Data File 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.) Click here for the Excel Data File 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 "0" wherever required.) Answer is not complete. Period 2 3 4 5 6 Total 160 150 160 180 | 170 170 140 960 150 150 150 160 150 10 bb 160 920 40 10 0 10 ooo 10 0 COCO doo 0 10 10 0 0 0 20 20 0 0 0 0 0 20 0 0 0 0 Forecast Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Regular Overtime Subcontract Inventory Backlog Total
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