11initial data costsperunit regtime overtime

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (Units) 1,000 1,200 1,400 1,800 1,800 1,800 1,300 1,300 1,300 1,300 1,300 1,300 OT (Units) 260 260 260 End Inv. 180 180 80  0  0  0 Subcont. Units 120 100  $11,700    10,500     2,000 160    20,000 240    24,800 240    24,800 Total Extra Cost: $93,800 ■ If our object in comparing the plans is to identify the elements of an optimal plan, we must consider the following: Plans A, B, and D begin with zero initial inventory, and Plan C begins with an initial inventory of 300 units. It is therefore inappropriate to compare directly the results of Plan C with those of Plans A, B, and D. In addition, we can assume that the warehouse constraint introduced in Plan D would have affected the costs of Plan A and Plan C had it been in effect in those plans. What one can say is that the aggregate planning options should be utilized as available, in the following order: ■ ■ ■ Carryover of inventory: $25/unit Overtime: $40/unit Idle Time (Units) Extra Cost ■ ...
View Full Document

This document was uploaded on 01/24/2014.

Ask a homework question - tutors are online