a. As production manager of Fairmount, youre in charge of meeting the preceding demand schedule for periods

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a. As production manager of Fairmount, you’re in charge of meeting the preceding demand schedule for periods 1 through 4. President Shea specifies that you keep your production plan level for all four months. In addition, Shea limits the total amount of production per month to 4,600 units. Also, since the market Fairmount competes in is very competitive, planned stockouts are not allowed. Therefore, you must decide if and when to subcontract. Maximum amount of subcontracting available in any one period is 1,000 units. Ending inventory at the end of period 4 should be zero. Use a spreadsheet to determine your plan’s cost.

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Manufacturing Planning And Control For Supply Chain Management

ISBN: 9780073377827

6th Edition

Authors: F. Robert Jacobs, William Berry, David Clay Whybark, Thomas Vollmann

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