Adjust 2 gives a feasible plan basic plan 3000 over

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Unformatted text preview: easible plan. Basic plan: 3000 over capacity in P5, Adjustment: move 2200 to P4, 800 to P3. Basic plan: Capacity exceeded in P4. Move 300 to P3, 300 to P2. Adjust 1: Excess inventory in P3. Move 100 units from P2 to P5. Try this problem with the level strategy. 13 We will now calculate costs for the final plan. 14 Ex 6 Chase Strategy Unit holding cost: $60/ period Capacity Regular Overtime SubSub-contract 6000 1200 4000 Capacity in P5 0 0 6000 Unit cost $1000 $1150 $1250 Example 6 Level Strategy: Do not exceed capacities. No shortages. Avg. requirement = (5000+6000+8000+9000+9000+11000) / 6 = 8000 Period Capacity Demand Basic Plan Basic Plan Inventory Final Plan Inventory 1 5000 8000 3000 8400 3400 2 6000 8000 8000 5000 8400 5800 3 8000 8000 8000 5000 8400 6200 4 9000 8000 8000 4000 8400 5600 5 6000 9000 8000 8000 3000 6000 2600 6 11200 11000 8000 8000 0 8400 0 Period 1 2 3 4 5 6 Total 48000 Demand 5000 6000 8000 9000 Final Plan 5000 6000 8800 11200 6000 Regular 5000 6000 6000 OT 1200 - 1200 SC - 1600 4000 End Inventory 0 0 800 3000 Regular 5000 6000 6000 6000 OT 0 0 1380 1380 SC 0 0 2000 5000 Holding 0 0 48 180 Total 5000 6000 9428 12560 9000 11000 6000 11000 0 6000 0 1200 6000 3800 0 0 0 6000 0 1380 7500 4750 0 0 7500 12130 11200 11200 11200 11200 Costs in thousand dollars Basic plan: 2000 more than capacity in P5. Move 2000 to other periods equally (400 each...
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This note was uploaded on 01/31/2011 for the course MGMT 361 taught by Professor Panwalker during the Spring '10 term at Purdue University-West Lafayette.

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