The production manager at Zam Tech has developed following aggregate forecast of its products: The manager has also assembled the following information to help in the development of the aggregate plans: The manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers. (a) What is the level total Production Rate? Answer units (b) What is the maximum quantity subcontracted and in which period? Quantity-Answer and Period-Answer (c) What is the maximum quantity backlogged and in which period? Quantity-Answer and Period-Answer (d) What is the total regular production cost? $Answer (e) What is the total overtime cost? $Answer (f) What is the total subcontracting cost? $Answer (g) What is the total inventory carrying cost? $Answer (h) What is the total backorder cost? $Answer (i) What is the total aggregate plan cost? $Answer
The
The manager has also assembled the following information to help in the development of the aggregate plans:
The manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers.
(a) What is the level total Production Rate? Answer units
(b) What is the maximum quantity subcontracted and in which period? Quantity-Answer and Period-Answer
(c) What is the maximum quantity backlogged and in which period? Quantity-Answer and Period-Answer
(d) What is the total regular production cost? $Answer
(e) What is the total overtime cost? $Answer
(f) What is the total subcontracting cost? $Answer
(g) What is the total inventory carrying cost? $Answer
(h) What is the total backorder cost? $Answer
(i) What is the total aggregate plan cost? $Answer
![The production manager at Zam Tech has developed following aggregate forecast of its products:
Period
1
3
4
5
7
Forecast
50
44
55
60
50
40
51
The manager has also assembled the following information to help in the development of the aggregate plans:
Regular production cost
$80.00/unit
Overtime production cost
$120.00/unit
Subcontracting cost
$140.00/unit
Holding cost
$10.00/unit/month
Backorder cost
$20.00/unit
Regular capacity
40 units/month
Overtime capacity
8 units/month
Subcontracting capacity
12 units per month
The manager wants to use a level strategy with a combination of backlogs, subcontracting, overtime and inventory to
handle variations in demand. There is no beginning inventory and the safety stock requirement is zero. Note that
there should not be a backlog in the final period. Note that no decimal points, commas or spaces in all the answers.
(a) What is the level total Production Rate?
units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcfbf8456-ba88-4544-ada4-19268bb1d390%2F3844d8c8-946d-4f96-87c9-174d07a57c69%2Fcu3bbu_processed.png&w=3840&q=75)
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