Question

Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 150 units per month (Cost per Unit = $30 ). Overtime is limited to a maximum of 20 units per month (Cost per Unit -S45). Units purchased from the subcontractor (Cost per Unit = $54 ) cannot exceed 60 per month and the total purchases from the subcontractor over the 6 month period cannot be over 220 units. Backorders cannot exceed 40 units in any given month (Cost per Unit = $4 ) and must be no more than 40 in Period 6. Average Inventory Holding cost per Unit - S8. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below. Month 4 6 Total Regular Outp Overtime Output Subcontract Beginning Invento Total Available for Sale Less Forecast Plus Backlog-Current Period Less Backlog-Previous Period Ending Invento Average Invento 40 220 170 270 180 170 150 Hint: Range (6010,6190) Total Cost Month 1 - Total Cost Month 2- Total Cost Month 3- Hint: Range (5320,5470) Total Cost Month 4- Hint: Range (5500,5650) Total Cost Month 5- Total Cost Month 6 = Total Cost All Periods- Answer Format: No Dollar (S) signs or commasAnswers should be whole numbers. A Hint: Range (36520,36720)

Answer 1

Values in unit
Month	1	2	3	4	5	6	Total	Total Cost
Regular Output	150	150	150	150	150	150	900	27000
Overtime Output	20	20	20	20	20		100	4500
Subcontract	10		60	10			80	4320
Beginning Inventory	40	0	0	0	0	0	40
Total Available for Sale	220	170	230	180	170	150	1120
Less Forcast	220	170	270	180	170	150	1160
Plus Backlog-Current Period	0	0	40	0	0	0	40	2320
Less Backlog-Previous Period	0	0	0	0	0	0	0
Ending Inventory	0	0	0	0	0	0	0
Average Inventory	20	0	0	0	0	0	20	160

Values Showed in Amount
Month	1	2	3	4	5	6	Total
Regular Output (30)	4500	4500	4500	4500	4500	4500	27000
Overtime Output (45)	900	900	900	900	900	0	4500
Subcontract (54)	540	0	3240	540	0	0	4320
Cost of holding Average inventory (8)	160	0	0	0	0	0	160
Backlog cost (58)	0	0	2320	0	0	0	2320
Total Cost for every month	6100	5400	10960	5940	5400	4500	38300