Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 13, Problem 13DQ
Summary Introduction

To determine: Thelimitations of using a transportation method for aggregate planning

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

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Explain what are the major limitations of using the transportation method for aggregate planning?
What are major limitations of using the transportationmethod for aggregate planning?
1. A company would like to develop an aggregate plan and evaluate its cost using the transportation method. Solve using Excel of the QM software. Note: do not do this manually Related data are shown in the tables below Demand forecast Period Demand (Unit) 1 80 2 90 3 40 Supply Capacity available (units) Regular time 40 65 30 Period 1 2 3 Other Data Beginning Inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost Overtime 20 12 10 30 R 100 R 150 R 200 R 5 Subcontract 10 5 5
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