Question

Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 160 units per month (Cost per Unit = $60 ). Overtime is limited to a maximum of 20 units per month (Cost per Unit =$90). Units purchased from the subcontractor (Cost per Unit = $108 ) cannot exceed 50 per month and the total purchases from the subcontractor over the 6 month period cannot be over 200 units. Backorders cannot exceed 70 units in any given month (Cost per Unit = $5 ) and must be no more than 10 in Period 6. Average Inventory Holding cost per Unit = $10. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below.

Month	1	2	3	4	5	6	Total
Regular Output
Overtime Output
Subcontract
Beginning Inventory	10
Total Available for Sale
Less Forecast	220	200	300	190	150	150
Plus Backlog-Current Period
Less Backlog-Previous Period
Ending Inventory						10
Average Inventory

Required:
Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost Solution. Leave a copy of your Spreadsheet in the DropBox.

Total Cost Month 1 =

Hint: Range (14590 ,14790 )
Total Cost Month 2 =

Hint: Range (13500 ,13610 )
Total Cost Month 3 =

Total Cost Month 4 =

Total Cost Month 5 =

Hint: Range (11510 ,11600 )
Total Cost Month 6 =

Total Cost All Periods =

Hint: Range (81710 ,82710 )
Answer Format: No Dollar ($) signs or commas --- Answers should be whole numbers.

Answer 1