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Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period Forecast 1 250 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period 2 300 Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 3 350 2 PRODUCTION DD0000 5 500 4 6 250 5 Total 2,050 6 Total

Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period Forecast 1 250 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period 2 300 Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 3 350 2 PRODUCTION DD0000 5 500 4 6 250 5 Total 2,050 6 Total

Practical Management Science
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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Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. 1 250 2 300 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 Period Forecast Regular Overtime Subcontracting Output-Forecast Beginning Ending Average Backorders Regular Overtime Subcontracting Inventory Backorders TOTAL 2 PRODUCTION PROCESS INVENTORY 3 350 COSTS 4 5 500 LO 5 6 250 (O Total 2,050 Total
Transcribed Image Text:Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. 1 250 2 300 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 Period Forecast Regular Overtime Subcontracting Output-Forecast Beginning Ending Average Backorders Regular Overtime Subcontracting Inventory Backorders TOTAL 2 PRODUCTION PROCESS INVENTORY 3 350 COSTS 4 5 500 LO 5 6 250 (O Total 2,050 Total
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can you explain what that implies? for example if you were to write a short note on your results 

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Prepare the capacity plan using the chase strategy, and compute the costs. 

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