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    Practice Problem: Chapter 13, Aggregate Planning Problem 1

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    Azucena Ayala Hernández
    This document provides the details of a practice problem involving aggregate planning. It outlines the demand, production capacity from regular time, overtime, and subcontracting, beginning inventory levels, and associated costs for each period in order to set up and solve a transportation problem to determine the minimum cost production plan. The objective is to meet demand at the lowest total cost while considering inventory carrying costs and backorder costs.

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    Practice Problem: Chapter 13, Aggregate Planning Problem 1

    Uploaded by

    Azucena Ayala Hernández
    16 views2 pages
    This document provides the details of a practice problem involving aggregate planning. It outlines the demand, production capacity from regular time, overtime, and subcontracting, beginning inventory levels, and associated costs for each period in order to set up and solve a transportation problem to determine the minimum cost production plan. The objective is to meet demand at the lowest total cost while considering inventory carrying costs and backorder costs.

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    ch13pp.doc

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    This document provides the details of a practice problem involving aggregate planning. It outlines the demand, production capacity from regular time, overtime, and subcontracting, beginning inventory levels, and associated costs for each period in order to set up and solve a transportation problem to determine the minimum cost production plan. The objective is to meet demand at the lowest total cost while considering inventory carrying costs and backorder costs.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    16 views2 pages

    Practice Problem: Chapter 13, Aggregate Planning Problem 1

    Uploaded by

    Azucena Ayala Hernández
    This document provides the details of a practice problem involving aggregate planning. It outlines the demand, production capacity from regular time, overtime, and subcontracting, beginning inventory levels, and associated costs for each period in order to set up and solve a transportation problem to determine the minimum cost production plan. The objective is to meet demand at the lowest total cost while considering inventory carrying costs and backorder costs.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Practice Problem: Chapter 13, Aggregate Planning

    Problem 1:
    Set the following problem up in transportation format and solve for the minimum cost plan.

    Period

     
    Feb Mar Apr

    Demand 55 70 75

           

         
    Capacity

    Regular 50 50 50

    Overtime 5 5 5

    Subcontract 12 12 10

           

       
    Beginning Inventory 10

           

         
    Costs

    Regular time $60 per unit

    Overtime $80 per unit

    Subcontract $90 per unit

    Inventory carrying cost $1 per unit per month

    Back order cost $3 per unit per month

    1
    ANSWERS

    Problem 1:

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