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Problem 11-9

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:


 
 

MONTH

 123456
  Demand160   150   160   180   170   140   
  Capacity      
     Regular150   150   150   150   160   160   
     Overtime10   10   0   10   10   10   

 
Cost Per Unit
  Regular time$50  
  Overtime75  
  Subcontract80  
  Inventory, per period4  

 

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. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)


 
  Period            1         2        3       4       5      6       Total
  Forecast160  150  160  180  170  140  960  
  Output              
    Regular150  150  150  150  160  160  920  
    Overtime10  10  0  10  10  10  50  
    Subcontract[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
  Output- Forecast[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
  Inventory              
    Beginning[removed]  [removed]  [removed]  [removed]  [removed]  [removed]    
    Ending[removed]  [removed]  [removed]  [removed]  [removed]  [removed]    
    Average[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
  Backlog[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
  
  Costs:              
    Regular$ [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  $ [removed]  
    Overtime[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
    Subcontract[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
  Inventory[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
  Backlog[removed]  [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  
  
  Total$ [removed]  [removed]  [removed]  [removed]  [removed]  [removed]  $ [removed]  
  
    • 11 years ago
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