hr_om11_ism_ch13

11initial data costsperunit regtime overtime

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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 ■ ...
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This document was uploaded on 01/24/2014.

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