Variety of recreation and leisure products

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Reference no: EM131804729

SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast:

	Mar	Apr	May	Jun	Jul	Aug	Sep	Total
Demand	50	44	55	59	50	41	51	350

Use the following information to develop aggregate plans.

Regular production cost $80 per unit

Overtime production cost $120 per unit

Regular capacity 40 units per month

Overtime capacity 8 units per month

Subcontracting cost $140 per unit

Subcontracting capacity 12 units per month

Holding cost $10 per unit per month

Backorder cost $20 per unit

Beginning Inventory 0 units

Develop an aggregate plan using a level strategy. Use a combination of backlogs(shortage), subcontracting, and inventory to handle variations in demand.

(1) Please show me the aggregate planning without any adjustment.

(2) Please show me the aggregate planning with the condition of " No shortage allowed".

(3) If you are the manager of production, which plan would you pick up?

Reference no: EM131804729

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