Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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A manager is attempting to put together an agregate plan for the coming nine months. She has obtained a
Period 1 2 3 4 5 6 7 8 9 Total
Forecast 190 230 260 280 210 170 160 260 180 1,940
The department now has 20 ful-time employees, each of whom produces 10 units of output per period at cost of $6 per unit. Beging inventory for period 1 is zero. Inventory carrying cost is $5 per unit per period, and backlog cost is $10 per unit per period.
a. Will the current work force be able to handle the forecast demand?
b. Determine the total cost of the plan, including production, inventory, and backorder cost.
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