Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period Forecast 1 250 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period 2 300 Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 3 350 2 PRODUCTION DD0000 5 500 4 6 250 5 Total 2,050 6 Total
Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period Forecast 1 250 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period 2 300 Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 3 350 2 PRODUCTION DD0000 5 500 4 6 250 5 Total 2,050 6 Total
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 111P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
can you explain what that implies? for example if you were to write a short note on your results
Solution
by Bartleby Expert
Follow-up Question
Prepare the capacity plan using the chase strategy, and compute the costs.
Solution
by Bartleby Expert
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,