Question

# Management Instructions                                      &nbs

Management Instructions

-          Ending inventory target for Period 5

-          Backorder maximum if possible (after the first period)

Regular shift production per employee per period

The company's production strategy keeps the regular shift fully utilized

40       Maximum overtime production per period if needed                                               Use Overtime before Subcontractors

10       Maximum subcontractor production per period if needed

32       Initial inventory

Aggregate Plan

1          2          3          4          5          Totals

Forecast                                  240     245     235     190     290

Employees

Output

Regular                       220     220     220     220     220

Overtime

Subcontractor

Output - Forecast

Inventory

Beginning

Ending

Average

Backlog

Costs

Regular           \$298.00

Overtime         \$347.00

Subcontractor \$410.00

Hire / Layoff    \$885.00

Inventory         \$65.00

Backlog           \$75.00

Total Costs

Perform the necessary calculations for a Match (Chase) Production Strategy

What is the Backlog quantity for Period 3?

What is the Backlog for Period 5?

What is the Output - Forecast Quantity for Period 2?

What is the Beginning Inventory quantity for Period 2?

What is the Beginning Inventory quantity for Period 5?

What is the cost of Overtime Production in Period 1?

What is the Cost of Inventory for Period 3?

What is the Total Cost of Period 4?

What is the cost of Backlog for Period 5?

What is the Average Inventory in Period 4?

Chase plan is following:

Formulas:

1 Period 2 Forecast Total 1200 245 12 240 235 190 290 Em 10 4 Output Regular Overtime Subcontract 200 180 280 10 240 240 1140 32 32 8 Output Forecast 9 Invento 10 32 Beginning Ending Average 12 13 Backlo 14 Costs 15 16 17 18 Hire/Layoff 19 Invento 20 Back orders 21 Total 16 21 Regular Overtime Subcontract 298.0059,600 71,5071,52053,64083,440339,720 9,716 347.002,7761,735 410.00 885.00 2 2 01,735 3,470 0 8,850 1,770 02,655 4,425 17,700 1,365 65.001,040 75.00 163 163 72,266 75,025 71,68358,19391,335368,501 24