value: 4.00 points Nowjuice, Inc., produces Shakewell® fruit juice. A planner ha
ID: 2426282 • Letter: V
Question
value:
4.00 points
Nowjuice, Inc., produces Shakewell® fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months.
Use the following information to develop aggregate plans.
Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan.
Use level production. Supplement using overtime as needed. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Use a combination of overtime (500 cases per period maximum), inventory, and subcontracting (500 cases per period maximum) to handle variations in demand. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Use overtime up to 750 cases per period and inventory to handle variations in demand. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Which plan has the lowest total cost?
Nowjuice, Inc., produces Shakewell® fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months.
Explanation / Answer
1. a
Period
May
Jun
Jul
Aug
Sep
Oct
Total
Forecast
4,000
4,800
5,600
7,200
6,400
5,000
33,000
Output
Regular
5000
5000
5000
5000
5000
5000
30000
Overtime
0
0
0
1,600
1,400
0
3000
Output - Forecast
5,000
5,000
5,000
6,600
6,400
5,000
33000
Inventory
Beginning
0
1,000
1,200
600
0
0
2800
Ending
1,000
1,200
600
0
0
0
2800
Average
500
1100
900
300
0
0
2800
Backlog
Costs:
Regular
50000
50000
50000
50000
50000
50000
300000
Overtime
0
0
0
25600
22400
0
48000
Inventory
1000
1200
600
0
0
0
2800
Back orders
Total
51000
51200
50600
75600
72400
50000
350800
1.b.
Period
May
Jun
Jul
Aug
Sep
Oct
Total
Forecast
4,000
4,800
5,600
7,200
6,400
5,000
33,000
Output
Regular
5000
5000
5000
5000
5000
5000
30000
Overtime
0
500
500
500
0
0
1500
Subcontract
0
500
500
500
0
0
1500
Output - Forecast
Inventory
Beginning
0
1,000
2,200
2,600
1,400
0
7200
Ending
1,000
2,200
2,600
1,400
0
0
7200
Average
500
1,600
2,400
2,000
700
0
7200
Backlog
0
0
0
0
0
0
0
Costs:
Regular
50000
50000
50000
50000
50000
50000
300000
Overtime
0
8000
8000
8000
0
0
24000
Subcontract
0
10000
10000
10000
0
0
30000
Inventory
1,000
2,200
2,600
1,400
0
0
7200
Back orders
0
0
0
0
0
0
0
Total
51000
70200
70600
69400
50000
50000
361200
1.c.
Period
May
Jun
Jul
Aug
Sep
Oct
Total
Forecast
4,000
4,800
5600
7,200
6,400
5,000
33,000
Output
Regular
5000
5000
5000
5000
5000
5000
30000
Overtime
0
750
750
750
750
3000
Output - Forecast
Inventory
Beginning
0
1,000
1,950
2,100
650
0
5700
Ending
1,000
1,950
2,100
650
0
0
5700
Average
500
1,475
2,025
1,375
325
0
5700
Backlog
0
0
0
0
0
0
0
Costs:
Regular
50000
50000
50000
50000
50000
50000
300000
Overtime
0
12000
12000
12000
12000
0
48000
Hire/Lay off
0
0
0
0
0
0
0
Inventory
1,000
1,950
2,100
650
0
0
5700
Back orders
Total
51000
63950
64100
62650
62000
50000
353700
2.
Cost
First
350800
second
361200
Third
353700
first plan has lowest cost
* In every plan regular capacity has been utilised 100%
Period
May
Jun
Jul
Aug
Sep
Oct
Total
Forecast
4,000
4,800
5,600
7,200
6,400
5,000
33,000
Output
Regular
5000
5000
5000
5000
5000
5000
30000
Overtime
0
0
0
1,600
1,400
0
3000
Output - Forecast
5,000
5,000
5,000
6,600
6,400
5,000
33000
Inventory
Beginning
0
1,000
1,200
600
0
0
2800
Ending
1,000
1,200
600
0
0
0
2800
Average
500
1100
900
300
0
0
2800
Backlog
Costs:
Regular
50000
50000
50000
50000
50000
50000
300000
Overtime
0
0
0
25600
22400
0
48000
Inventory
1000
1200
600
0
0
0
2800
Back orders
Total
51000
51200
50600
75600
72400
50000
350800
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