Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Right now is August 1, 2023. You would like to construct an aggregate production plan for product PX27 for January 2024 through July 2024. Cost
Right now is August 1, 2023. You would like to construct an aggregate production plan for product PX27 for January 2024 through July 2024. Cost of regular-time production = 73 $/u. Cost of overtime production = 94 $/u. Inventory holding cost = 3 $/u/month. Cost of increasing regular production = Cost of decreasing regular production 25 $/u. 39 $/u. The regular-time production in December 2023 will be 1,923 u. The inventory a the end of December 2023 is estimated to be 157 u. The forecasted demand (in units) in January 2024 through July 2024 are: 1,559, 1,888, 2,147, 2,188, 1,640, 1,999, 1,569 You want to use the level production strategy with overtime production. Furthermore, you will keep inventory as low as possible but stock-outs must be avoided. Suppose you keep the monthly regular-time production constant at 1,753 units and add overtime production if necessary. You must perform the needed calculation and answer the question shown below. NOTE: Do not use any comma in your answers. = The total cost of overtime production is dollars.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started