3. Nowjuice, Inc., produces bottled pickle juice. A planner has developed an aggregate forecast for demand (in cases) for the next six months.
|
Month: |
May |
June |
July |
Aug. |
Sept. |
Oct. |
|
Forecast |
4,000 |
48,000 |
5,600 |
7,200 |
6,400 |
5,000 |
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. Which plan has the lowest total cost?
1. Use level production. Supplement using overtime as needed.
2. Use a combination of overtime (500 cases per period maximum), inventory, and subcontracting (500 cases per period maximum) to handle variations in demand.
3. Use overtime up to 750 cases per period and inventory to handle variations in demand.
Use “Solver” to set up and answer all three parts. Save all parts in three separate worksheets (e.g., part a, part b and part c) in a single spreadsheet file (make sure that your Excel file name includes your last name).
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