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Chapter 13: Example 2

Aggregate Planning Backlogging

Enter
Enter the
the costs
costs at
at the
the top.
top. In
In some cases this may require some
some calculations.
calculations.

Next enter the conditions from last period - inventory and units produced.
Costs (per unit)
Reg time 8 Finally, enter the demands and the production quantities in area below.
Overtime 11.2
Subcontract 10
Holding 5
Shortage
Increase 0
Decrease 0

Starting Conditions
Initial inventory 0
Units last period

Data RESULTS
Reg Time Overtime Subcontract
Period Demand Production Production Production Inventory Holding Shortage
Jan 900 1100 0 0 200 200 0
Feb 700 900 0 0 400 400 0
Mar 800 1050 0 0 650 650 0
Apr 1200 1050 0 0 500 500 0
May 1500 1100 0 0 100 100 0
Jun 1100 1000 0 0 0 0 0
Total 6200 6200 0 0 1850 0
Average 1033.333
Cost $49,600 $0 $0 $9,250 $0
Total Cost $58,850
ay
ay require
require some
some calculations.
calculations.

ntory
ntory and
and units
units produced.
produced.

uantities
uantities in
in area
area below.
below.

Change Increase Decrease


0 0 0
-200 0 200
150 150 0
0 0 0
50 50 0
-100 0 100
200 300

$0 $0