hr_om11_ism_ch13

Units endinginv extracost 200 400 400 200 1600 1600

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Unformatted text preview: e. The resulting aggregate plan would be: Period Demand Reg. (Units) OT (Units) End Inv. (Units) 0 1 2 3 4 5 6 7 8 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,400 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 — — 80 320 320 320 200 — 200 400 400 280 400 120 — — 200 Stockouts (Units) Extra Cost $8,000 8,000 9,600 24,000 18,400 160 32,000 10,000 4,000 Total Extra Cost: $114,000 CHAPTER 13 A G G R E G A T E P L A N N I N G 193 Plan E (b) Period Demand 0 1 2 3 4 5 6 7 8 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,400 Production Subcont. (Units) Ending Inv. Extra Cost 200 400 400 200 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600  $8,000   8,000   4,000       0 600 45,000 600 45,000 200 15,000 200   4,000       Total Extra Cost: $129,000 All other things being equal, it would appear that Plan D, with a cost of $122,000, should be recommended over Plan E (cost = $129,000). Note that of all the plans discussed, it would appear that Plan C, with a cost of $85,500, should be recommended over all others. Month Expected Demand Jul Aug Sep Oct Nov Dec 13.7 400 500 550 700 800 700 Production per person per day: 8 hr/person ÷ 4 hours/ disk Therefore, each person can produce 2 disks per day, or 40 disks per month....
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