SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast:
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Total
|
|
Demand
|
50
|
44
|
55
|
59
|
50
|
41
|
51
|
350
|
Use the following information to develop aggregate plans.
Regular production cost $80 per unit
Overtime production cost $120 per unit
Regular capacity 40 units per month
Overtime capacity 8 units per month
Subcontracting cost $140 per unit
Subcontracting capacity 12 units per month
Holding cost $10 per unit per month
Backorder cost $20 per unit
Beginning Inventory 0 units
Develop an aggregate plan using a level strategy. Use a combination of backlogs(shortage), subcontracting, and inventory to handle variations in demand.
(1) Please show me the aggregate planning without any adjustment.
(2) Please show me the aggregate planning with the condition of " No shortage allowed".
(3) If you are the manager of production, which plan would you pick up?