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 150 160 150 10 150 19 150 10 160 19 Cost Per Unit Regular time Overtime Subcontract Inventory holding, per month $50 75 80 4 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.) 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.) Period 3 4 5 6 Total 160 150 160 180 170 140 960 Forecast Output Regular Overtime 150 150 150 10 160 10 160 10 X 150 10 0 0 920 50 X 0 10 10 10 X 0 X 0 0 20 10 X 0 -10 X 0 30 x 0 X Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs 0 0 0 0 0 10 X 5 X 0 0 10 X 10 % 10 0 10 X 0 5 0 30 X 15 X 0 35 0 0 0 0 Regular 7,500 7.500 7,500 8,000 8,000 $ 7,500 750 750 Overtime Subcontract 46,000 3,750 X 1.600 750 0 X 20 X 0 800 X 20 X Inventory Backlog 800 40 X 0 0 0 750 0 0 0 8,750 750 X 0 60 X 0 8,810 140 x 0 Total $ 8,250 8,270 X 8,340 X 9,070 X x 51,490 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 150 160 150 10 150 19 150 10 160 19 Cost Per Unit Regular time Overtime Subcontract Inventory holding, per month $50 75 80 4 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.) 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.) Period 3 4 5 6 Total 160 150 160 180 170 140 960 Forecast Output Regular Overtime 150 150 150 10 160 10 160 10 X 150 10 0 0 920 50 X 0 10 10 10 X 0 X 0 0 20 10 X 0 -10 X 0 30 x 0 X Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs 0 0 0 0 0 10 X 5 X 0 0 10 X 10 % 10 0 10 X 0 5 0 30 X 15 X 0 35 0 0 0 0 Regular 7,500 7.500 7,500 8,000 8,000 $ 7,500 750 750 Overtime Subcontract 46,000 3,750 X 1.600 750 0 X 20 X 0 800 X 20 X Inventory Backlog 800 40 X 0 0 0 750 0 0 0 8,750 750 X 0 60 X 0 8,810 140 x 0 Total $ 8,250 8,270 X 8,340 X 9,070 X x 51,490
