* The president of Hill Enterprises. Terri Hill, projects the firm's aggregate demand requirements over the...
* The president of Hill Enterprises. Terri Hill, projects the firm's aggregate demand requirements over the next 6 month as follows:
January 1,600
February 2,500
March 1,800
April 2,000
May 1,900
June 2,200
Her operation manager is considering a new plan. Stockout cost
of lost sales is $100.
Develope a constant work force model for this problem that will
produce the average demand of this 6 months period in each month.
Determine the total cost of this plan.
Her operations manager is considering a new plan. Stock cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs.
Homework Answers
The aggregate plan is following:
EXCEL FORMULAS:
| Cell | Formula | Copy to |
| E4 | =MAX(0,C4-F3-D4) | E4:E9 |
| F4 | =MAX(0,F3-C4+D4) | F4:F9 |
| F14 | =E10*E11 | |
| F15 | =F10*F11 | |
| F16 | =SUM(F14:F15) |
Total cost of this plan = $ 34,000
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* The president of Hill Enterprises. Terri Hill, projects the
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