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 $58
Overtime 74
Sub-contract 81
Inventory, per period 4
Sub-contracting 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.
Period 1 2 3 4 5 6 Total
160 150 160 180 170 140 960
150 150 150 150 160 140 900
Overtime 10 10 0 10 10 0 40

Question

08-01-2021
Business

Answered

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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 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 $58
Overtime 74
Sub-contract 81
Inventory, per period 4
Sub-contracting 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.
Period 1 2 3 4 5 6 Total
160 150 160 180 170 140 960
150 150 150 150 160 140 900
Overtime 10 10 0 10 10 0 40

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