Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. Initial Inventory Level = 1,000 units Regular Time = $15 Lost Sales Cost/Unit = $24 Inventory Carry Cost per unit = $3 Quarter 1 2 3 4 Totals Beginning Inventory Jet Ski Engine 10,000 15,000 16,000 3,000 44,000 600 Snowmobile Engine 9,000 7,000 19,000 10,000 45,000 400 Total Engines 19,000 22,000 35,000 13,000 89,000 1,000 Average Demand Rate/Quarter 22,000 units Regular Time Production Rate 22,000 units
Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations.
Initial Inventory Level = 1,000 units
Regular Time = $15
Lost Sales Cost/Unit = $24
Inventory Carry Cost per unit = $3
Quarter 1 2 3 4 Totals Beginning Inventory
Jet Ski Engine 10,000 15,000 16,000 3,000 44,000 600
Snowmobile Engine 9,000 7,000 19,000 10,000 45,000 400
Total Engines 19,000 22,000 35,000 13,000 89,000 1,000
Average Demand Rate/Quarter 22,000 units
Regular Time Production Rate 22,000 units
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 9 images
