Develop the high level or aggregate plan

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Reference no: EM131442325

Your company is planning the next 5 months of production and you are to develop the high level (aggregate) plan. The costs are given in the table below. The marketing department has a policy to allow up to 144 bottles on backorder. The choses to chase demand but will allow up to 2,000 bottles per period to be made using overtime and up to 500 bottles per period using subcontractors The number of employees per period is given; each employee can produce 2,000 bottle per period Note: If you have employees, you must allow them to produce product The forecast is given below. Warehouse B reports that you have a beginning inventory of 8,850 bottles. Period 1 2 3 4 5 Totals Forecast (bottles) 14,500 15,200 14,900 15,900 15,555 Number of employees 7 7 6 6 6 Output Regular Overtime Subcontractor Output – Forecast Inventory Beginning Ending Average Backlog Costs Regular @ $2.90 / bottle Overtime @ $3.45 / bottle Subcontractor @ $4.04 / bottle Hire / Lay Off @ $1,250 each Inventory @ $0.55 / bottle Backlog @ $1.00 / bottle Total Costs:

Reference no: EM131442325

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