16 Jun Your Company Is Planning The Next 5 Months Of Production And You Are To Develop The High Level Main
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 prefers to never allow backorders if possible.
The company’s level strategy keeps your workforce fully utilized while first allowing overtime production
(up to 100 crates per period) and then using your subcontractor (up to 35 crates per period).
Note that one additional employee was added in period 3 to increase regular production.
The forecast is given below.
Warehouse B reports that you have 42 crates to begin with.
Period
1
2
3
4
5
Totals
Forecast (crates)
700
500
550
600
500
2,850
Capacity on regular shift
450
450
480
480
480
2,340
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