Sitting on Maggie Brumfield$$s desk is the latest planned order report $($shown below$)$ from the company$$s MRP system. Maggie$$s job is to determine if there is enough capacity to handle the workload and to level the load if it$$s uneven. She gathers the latest cost figures and gets to work. Subcontracting and hiring extra workers are not options at this point, but overtime, pulling work ahead, and postponing work are. Regular production costs $$10$ an hour and is limited to $40$ hours a week. Overtime costs $$15$ an hour and cannot exceed $40$ extra hours $($i$.$e$.,$ a double shift$).$ An inventory cost of $$3$ per period is assessed for each hour$$s worth of work performed in advance. Postponing work costs $$20$ per period for each hour of work postponed.

a$.$ Completely level the load by working the same number of hours each period $($fractions of an hour are acceptable$).$

b$.$ Economically level the load by assigning work that meets demand at the lowest possible cost. How much money is saved by economically leveling the load?

Planned Order Report

$$ Week

Item $1234$

A $90$

B $100250$

C $600160$

D $60$

Processing Times

Item Setup Time $($Min$)$ Run Time $($Min per unit$)$

A $153$

B $3015$

C $5010$

D $454$