Business
Business, 29.06.2019 00:30, dapabaro

Amanager is attempting to put together an aggregate plan for the coming nine months. she has obtained a forecast of expected demand for the planning horizon. the plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4 and again in period 8, as can be seen from the following forecasts: period 1 2 3 4 5 6 7 8 9 total forecast 190 230 260 280 210 170 160 260 180 1,940the department now has 20 full-time employees, each of whom can produce 10 units of output per period at a cost of $6 per unit. inventory carrying cost is $5 per unit per period, and backlog cost is $10 per unit per period. the manager is considering a plan that would involve hiring two people to start working in period 1, one on a temporary basis who would work only through period 5. this would cost $500 in addition to unit production costs. prepare an aggregate plan that uses overtime ($9 per unit, maximum output 25 units per period) and inventory variation. try to minimize backlogs. the ending inventory in period 9 should be zero, and the limit on backlogs is 60 units per period. note that total output = total regular output + overtime quantity. compute the total cost of your plan. assume 20 full-time workers. (omit the "$" sign in your response.) total cost $

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