Aggregate Planning and Cost Minimization for Furniture Production: A Case Study of Wormwood, Ltd

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award: 10 out of 10.00 points Aggregate Planning and Cost Minimization for Furniture Production: A Case Study of Wormwood, Ltd Problem 11 - 9 Wormwood, Ltd., produces a variety of furniture products. The planning committee wants to prepare an aggregate plan for the next six months using the following information: MONTH 1 2 3 4 5 6 Demand 160 150 160 180 170 140 Capacity Regular 150 150 150 150 160 160 Overtime 10 10 0 10 10 10 Cost Per Unit Regular time $50 Overtime 75 Subcontract 80 Inventory, per period 4 Subcontracting can handle a maximum of 10 units per month. Beginning inventory is zero. Develop a plan that minimizes total cost. No back orders are allowed. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Period Forecast Output Regular 1 160 150 2 150 150 3 160 150 4 180 150 5 170 160 6 140 160 Total 960 920 Overtime Subcontract 0 10 0 10 10 0 10 10 0 10 0 10 20 50 Output - Forecast 0 10 0 - 10 0 30 30 Inventory Beginning 0 0 10 10 0 0 Ending 0 10 10 0 0 30 Average 0 5 10 5 0 15 35 Backlog 0 0 0 0 0 0 0 Costs: Regular $ 7,500 7,500 7,500 7,500 8,000 8,000 $ 46,000 Overtime 750 750 0 750 750 750 3,750 Subcontract 0 0 800 800 0 0 1,600 Inventory 0 20 40 20 0 60 140 Backlog 0 0 0 0 0 0 0 Total $ 8,250 8,270 8,340 9,070 8,750 8,810 $ 51,490
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