The demand of a product, affected by seasonality, is 200 units/month from January to June and the double from July to De
Posted: Mon Apr 25, 2022 8:15 am
The demand of a product, affected by seasonality, is 200
units/month from January to June and the double from July to
December for a total of 3600 units. Knowing that:
the yearly demand must be produced;
each month is made of 20 standard working days;
the plant dedicated to the product can reach a max production
capacity of 20 units per day;
the inventory holding cost is 2 €/unit per month;
the cost of running the plant (whether it works or not) is
1 €/producible output;
the set-up cost to change the production volume is 2,000
€/set-up;
On the basis of the available information:
select between a chase or a level production plan
report the calculation to take the above decision
units/month from January to June and the double from July to
December for a total of 3600 units. Knowing that:
the yearly demand must be produced;
each month is made of 20 standard working days;
the plant dedicated to the product can reach a max production
capacity of 20 units per day;
the inventory holding cost is 2 €/unit per month;
the cost of running the plant (whether it works or not) is
1 €/producible output;
the set-up cost to change the production volume is 2,000
€/set-up;
On the basis of the available information:
select between a chase or a level production plan
report the calculation to take the above decision