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ID: 363174 • Letter: P

Question


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Problem 1. Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information: Period 12356Tocal 200 200 300 400 500 200 1800 Output Regular Time- $2 per skateboard Overtime -$3 per skateboard Subcontract $6 per skateboard Inventory $1 per Back orders- $5 per skateboard per period Zero inventory on hand per period on average inventory Prepare an aggregate plan and determine its cost using the preceding information. Assume a level regular time. Note that the planned ending inventory is zero. There are 15 workers, and each can produce 20 skateboards IS A LEVEL output rate of 300 units per period with per period. THI PROBLEM. HINT: Use inventory and backlog only)

Explanation / Answer

Given,

Regular Time = $2 per skateboard

            Overtime = $3 per skateboard

            Subcontract = $6 per skateboard

Inventory = $1 per skateboard per period on average inventory

Back orders = $5 per skateboard per period

Zero inventory on hand

Month

1

2

3

4

5

6

Total

Forecast

200

200

300

400

500

200

1800

Output - Reg

300

300

300

300

300

300

1800

Output - OT

Subcontract

Output-Forst

100

100

0

-100

-200

100

Inventory

Beg Inv.

0

100

200

200

100

0

End Inv.

100

200

200

100

0

0

Ave. Inv.

50

150

200

150

50

0

600

Backlog

100

100

Costs

Reg Time

600

600

600

600

600

600

3600

OT Time

Subcontract

Inventory

50

150

200

150

50

0

600

Backlog

500

500

Total Costs

$4700

Month

1

2

3

4

5

6

Total

Forecast

200

200

300

400

500

200

1800

Output - Reg

300

300

300

300

300

300

1800

Output - OT

Subcontract

Output-Forst

100

100

0

-100

-200

100

Inventory

Beg Inv.

0

100

200

200

100

0

End Inv.

100

200

200

100

0

0

Ave. Inv.

50

150

200

150

50

0

600

Backlog

100

100

Costs

Reg Time

600

600

600

600

600

600

3600

OT Time

Subcontract

Inventory

50

150

200

150

50

0

600

Backlog

500

500

Total Costs

$4700