Given the projected demands for the next six months prepare an aggregate plan that uses inventory regular time overtime subcontract and
backorders. Regular time is limited to 150 units per month (Cost per Unit = $30 ). Overtime is limited to a maximum of 20 units per month (Cost per Unit =$45).
Units purchased from the subcontractor (Cost per Unit = $54 ) cannot exceed 60 per month and the total purchases from the subcontractor over the 6 month period
cannot be over 220 units. Backorders cannot exceed 40 units in any given month (Cost per Unit = $4 ) and must be no more than 40 in Period 6. Average Inventory
Holding cost per Unit = $8. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below.
Regular Output Overtime Output Subcontract Beginning Inventory 40 220 170 270 180 170 150 Ending Inventory 0 Average Inventory
Required:
Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost Solution. Leave a copy of
your Spreadsheet in the DropBox. Total Cost Month 1 = Hint: Range (6010 6190 )
Total Cost Month 2 = Hint: Range (5320 5470 )
Total Cost Month 3 =
Total Cost Month 4 =
Total Cost Month 5 = Hint: Range (5500 5650 )
Total Cost Month 6 =
Total Cost All Periods = Hint: Range (36520 36720 )