Business
Business, 08.04.2020 02:29, jr928718

Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. The maximum regular capacity is 80 units per period. It allows for part time, overtime, and subcontracting production to meet the demand but no more than 20 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following. 1 2 3 4 5 6 TotalInputs Forecasted demand 100 125 120 80 75 70 570Workforce Level 80 80 80 80 80 80 480Part Time 12 12 12 12 12 12 72Overtime 0 0 0 0 0 0 0Subcontract 0 0 0 0 0 0 0Derived Beginning inventory 20 12 0 0 0 0 Ending inventory 12 0 0 0 0 2 Backlog 0 21 49 37 20 0 127Calculated Workforce level$5 400 400 400 400 400 400 $2,400Part Time $6 72 72 72 72 72 72 $432Overtime $7.5 0 0 0 0 0 0 $0Subcontract $8 0 0 0 0 0 0 $0Inventory holding $5 80 30 0 0 0 5 $115Back orders $20 0 420 980 740 400 0 $2,540 Total $552 $922 $1,452 $1,212 $872 $477 $5,487Use the information in Table 10.1. Which of these changes would result in the greatest improvement (in terms of total cost) for the production plan?Increase anticipation inventory to 30 units at the start of the first month. Reduce anticipation inventory to 18 units at the start of the first month. Increase anticipation inventory to 40 units at the start of the first month. Reduce anticipation inventory to 10 units at the start of the first

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