Answer Happy

For next 3 questions consider the aggregate planning information below. Product Std. Time Beginning Inventory Inventory Holding Cost ($/unit-mo) Backorder Cost ($/unit-mo) (person- hrs/part) 2 4 A B 0 o 1.0 3.0 10 20 Demand Forecast Product A Product B May 300 600 June 100 200 July 500 400 = All stockouts are backordered Workforce = 15 workers No hiring is possible. Capacity = 160 hours per worker per month regular time = 40 hours per worker per month overtime Regular time wage rate = $12 per hour Overtime wage rate 1.5 X regular time wage rate =
3. Suppose our plan is to produce, over the months of May, June and July, 300, 300 and 300 units of Product A and 400, 400 and 400 units of Product B. At the end of June our on-hand inventory of Product B would be a) = 0 b) >0 and < 50 c) > 50 and s 100 d) > 100