HW03-Sp11-key

HW03-Sp11-key - MGMT 36100: HW 03 50 Points Due: March 1,...

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MGMT 36100: HW 03 50 Points Due: March 1, 2011 Question 1: Total production capacity = 6,000 cases a month: 5,000 cases regular time, 400 overtime, and 600 subcontracting. Chase Strategy May June July Aug. Sept. Oct. Forecast 4000 4800 5600 7200 6400 5000 Basic Plan 4000 4800 5600 7200 6400 5000 Inventory 0 0 0 0 0 0 Adjustment 1 4000 6000 6000 6000 6000 5000 Inventory 0 1200 1600 400 0 0 Adjustment 2 5400 5400 5400 5800 6000 5000 Inventory 1400 2000 1800 400 0 0 (a) Chase strategy. Constraints : Cannot exceed capacity. No shortages are permitted. Avoid subcontracting as much as possible. Adjustment 1: Capacity exceeded. Move 400 units from Sept to July, move 1200 units from August to June. Adjustment 2 : Subcontracting used in June, July, August and September. Move 600 each from June and July and 200 from August to May to avoid subcontracting. Production May June July August September October Total Total 5400 5400 5400 5800 6000 5000 33000 Regular 5000 5000 5000 5000 5000 5000 30000 OT 400 400 400 400 400 0 2000 Sub-Contr. 0 0 0 400 600 0 1000 Inventory 1400 2000 1800 400 0 0 Cost Regular 10 50000 50000 50000 50000 50000 50000 300000 OT 16 6400 6400 6400 6400 6400 0 32000 Sub-Contr. 20 0 0 0 8000 12000 0 20000 Inventory 1 1400 2000 1800 400 0 0 5600 Total cost 57800 58400 58200 64800 68400 50000 357600 Chase Strategy May June July Aug. Sept. Oct. Forecast 4000 4800 5600 7200 6400 5000 Basic Plan 5500 5500 5500 5500 5500 5000 Inventory 1500 2200 2100 400 -500 0 Adjustment 1 5600 5600 5600 5600 5600 5000 Inventory 1600 2400 2400 800 0 0 Adjustment 2 5500 5500 5600 5700
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HW03-Sp11-key - MGMT 36100: HW 03 50 Points Due: March 1,...

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