Question 5 A company's forecast of demand in shown in the following table. Regular production costs $138 per unit with a monthly capacity of 47 units. Subcontracting costs $276 per unit and has unlimited capacity. It costs $13.0 per unit per month to hold inventory and $33 per unit per month to run backlogs. Period 3 Forecast 68 79 86 What is the total cost of a LEVEL aggregate plan?
Question 5 A company's forecast of demand in shown in the following table. Regular production costs $138 per unit with a monthly capacity of 47 units. Subcontracting costs $276 per unit and has unlimited capacity. It costs $13.0 per unit per month to hold inventory and $33 per unit per month to run backlogs. Period 3 Forecast 68 79 86 What is the total cost of a LEVEL aggregate plan?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
DO NOT ROUND ANY NUMBERS FOR THIS.
Assume you can produce a fractional number of units, hold a fractional number of units in inventory, and run backlogs that include fractional units.
I suggest you use excel for this homework.
Please answer 5 & 6
Transcribed Image Text:Question 5
A company's forecast of demand in shown in the following table. Regular
production costs $138 per unit with a monthly capacity of 47 units.
Subcontracting costs $276 per unit and has unlimited capacity. It costs
$13.0 per unit per month to hold inventory and $33 per unit per month to
run backlogs.
Period
1
2
3
Forecast
68
79
86
What is the total cost of a LEVEL aggregate plan?
Transcribed Image Text:Question 6
NowJuice, Inc. produces bottled pickle juice. A planner has developed an
aggregate forecast for demand (in cases) for the next four months. Use the
following information to develop an aggregate plan using CHASE.
Month
May
June
July
August
Forecast
588
704
606
649
Cost Per Unit
Monthly Capacity
Regular Production
Overtime Production
22
400
1.5 x Regular Prod Cost
400
What is the total cost of the CHASE plan?
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