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ABC Co. is considering 2 aggregate planning options fro the next 4 periods. Following data is given. Required Period Working days Forecast Daily Prodn. 1 20 400 20 2 22 550 25 3 26 728 28 4 25 700 28 Additional data: Hourly rate for labor = 10/hr. Work hours per day = 8 hrs. Lbr hrs required per unit of product =1hr/unit Subcontracrting cost per unit =$15/unit Inventory carrying cost per period = $5/unit Find: a) Total cost if level production option is used. b) Total cost for subcontracting option is if production is limited to 20 units per day. Show all steps.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92292123

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