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SOLVE BY EXCEL PLZ Part 2: Demand for a product is as follow: MAR APR MAY JUN JUL AUG SEP DEMAND 50 60 50 60
SOLVE BY EXCEL PLZ
Part 2: Demand for a product is as follow: MAR APR MAY JUN JUL AUG SEP DEMAND 50 60 50 60 70 40 50 The following conditions also apply: Regular production costs $70 and has a limit of 35 units per month Overtime production costs $110 and has limit of 10 units per month Subcontracting costs $135 and has unlimited capacity Inventory costs are $25 per month per unit. The beginning of the inventory level is zero The company always produces adequate products, so there is never a backorder or lost in sale. The company wants to have zero inventory at the end of September, however, inventory is allowed in other months. Questions: 1) Find the optimal production schedule and associated cost of meeting the forecasted demand. 2) How much should the company be willing to pay for an increase in regular capacity to 45 units per month? 3) How much should the company be willing to pay for an increase in overtime capacity to 25 units per month, assuming regular capacity stays at 35? 4) What is the value of increased overtime capacity if the regular capacity increased to 45? 5) Assuming no change in capacity, how would the production schedule change if inventory holding costs increase by 20%? 6) What if inventory holding costs decrease by 20%Step by Step Solution
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