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Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the...

Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information:
Month 1 2 3 4 5 6
Demand 160 150 160 180 170 140
Capacity Regular 150 150 150 150 160 160
Overtime 10 10 0 10 10 10

Cost per unit;
Regular time:$50
Overtime: 75
Subcontract: 80
Inventory pay period: 4

Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed.


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Answers.xlsx

Months
Demand
Capacity
Overtime 1
160
150
10 2
150
150
10 3
160
150
0 4
180
150
10 5
170
160
10 6
140
160
10 Answer
Capacity
Overtime
Subcontracting 150
10 150
10 150 150
10
20 160
10 140 8250 8250...

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