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H3 - Alfian Rindar Jovanka (30420120)
H3 - Alfian Rindar Jovanka (30420120)
KELAS : 2ID01
The aggregate demand for a product line for the next 6 months is given below. The firm has regular
capacity of 120 units per month, overtime capacity for 40 more units per month, and subcontracting
can supply up to 100 units per month.
Months 1 2 3 4 5 6
Demand 220 160 200 210 200 190
Additional Data
Previous Output Level 150 units
Beginning Inventory 100 units
Shortage Cost $ 250 per unit per month
Inventory Holding Cost $ 100 per unit per month
Regular Time Cost $ 1200 per unit
Subcontracting Cost $ 2000 per unit
Overtime Cost $ 1500 per unit
Hiring Workers to Increase Production Level $ 200 per unit
Lay-off Workers to Increase Production Level $ 500 per unit
Chase Strategy
Regular Inventory Change in Change in Change in
Months Demand Production Overtime Subcontracting adding production production production
(Shortage) level-up level- down
Beginning 100
Inventory
1 220 120 0 0 0 -30 0 30
2 160 160 0 0 0 40 40 0
3 200 200 0 0 0 40 40 0
4 210 200 10 0 0 40 10 0
5 200 200 0 0 0 -10 0 10
6 190 190 0 0 0 -10 0 10
Total 1180 1070 10 0 0 90 50
Per-unit Costs 1200 1500 2000 100 200 500
Costs Incurred 1284000 15000 0 0 18000 25000
Total Costs 1342000