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Question 6 (3 points): Problem: The planner for the company that makes garden tractors is about to prepare an aggregate production plan that will
Question 6 (3 points): Problem: The planner for the company that makes garden tractors is about to prepare an aggregate production plan that will cover the next six month. She has collected the following information: Month 1 2 3 4 5 6 Total Forecast 1000 2000 3000 4500 5500 2000 18000 demand Permanent Workforce: 140 Production per month: 2800 units or 20 per worker Initial inventory: 1000 units Desired inventory at the end of sixth month: 1000 units Costs Labour: Regular time permanent: $100 per tractor Overtime $150 per tractor Temporary Hire cost Inventory Back Order $100 per tractor : $500 per temporary worker or $25 per unit $10 per tractor per month (charged on average inventory level) : $150 per tractor per month The planner wants to evaluate a production plan that calls for level output/workforce (with current level of permanent workforce, 140), using inventory to absorb the uneven forecast demand but allowing some back order.
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