An electronics manufacturer makes video security systems for parking lots. Demand estimates for the next four quarters are 15, 19, 23, and 17 units. The company is preparing an aggregate plan that uses inventory, regular time, overtime, and backorders. Subcontracting is not allowed. Regular time capacity is 13 units for quarters 1 and 2, 16 units for quarters 3 and 4. Overtime capacity is 6 units per quarter. Regular time cost is $20,000 per system, while overtime cost is $30,000 per system. Backorder cost is $2000 per system per quarter; inventory holding cost is $1000 per system per quarter. Beginning inventory is 2.
Complete the table of data inputs for solving this aggregate planning problem with the transportation method. Specifically, how many sources are there, and how many destinations? What is the supply from each source, and the demand of each destination? What is the cost of each source-destination pair?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q89: A manager is applying the transportation model
Q90: A manager is applying the transportation model
Q91: Fred's Fabrication has the following aggregate demand
Q92: Washington Laundry Products, Inc., makes commercial and
Q93: A manufacturer of industrial seafood processing equipment
Q95: Describe the advantages and limitations of the
Q96: Among the mathematical approaches to aggregate planning,
Q97: Osprey Fabrication has the following aggregate demand
Q98: Eagle Fabrication has the following aggregate demand
Q99: Normally, the transportation model is used to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents