hr_om11_ism_ch13

# Units endinginv extracost 200 400 400 200 1600 1600

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

This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

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

Ask a homework question - tutors are online