A local bakery has the following demand forecast. Develop an aggregate plan that will satisfy the given conditions below: Level production must be made. Regular capacity is 650 units with allowable overtime. Overtime capacity has a maximum limit of 150 per period. The bakery has a starting inventory of 200 units from previous production and expects a delivery of buffer stock of 300 units on period 3. Further, the management wants an ending inventory of 500 units at the end of period 8 to serve as buffer stock for the next period. The management has an option to subcontract to meet demand. Subcontracting has no limit, as this will be a job-order basis. Period 1 2 Forecast 1,800 800 Regular cost: $10 Overtime cost: $12 Subcontract cost: $15 Inventory cost: $2 Back order: $5 Develop a plan with the minimum cost. 3 4 5 6 7 8 1,700 1,100 900 1,500 900 1,600

A local bakery has the following demand forecast. Develop an aggregate plan that will satisfy the given conditions below: Level production must be made. Regular capacity is 650 units with allowable overtime. Overtime capacity has a maximum limit of 150 per period. The bakery has a starting inventory of 200 units from previous production and expects a delivery of buffer stock of 300 units on period 3. Further, the management wants an ending inventory of 500 units at the end of period 8 to serve as buffer stock for the next period. The management has an option to subcontract to meet demand. Subcontracting has no limit, as this will be a job-order basis. Period 1 2 Forecast 1,800 800 Regular cost: $10 Overtime cost: $12 Subcontract cost: $15 Inventory cost: $2 Back order: $5 Develop a plan with the minimum cost. 3 4 5 6 7 8 1,700 1,100 900 1,500 900 1,600

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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