1318 Jos Martinez El Paso Developed Polished Stainless Steel Tortilla Machine Makes Showp Q32861695

.. 13.18 José Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a showpiece for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast of capacity and demand follows: MONTH Demand 150 160 130 200 210 Regular 150 150 150 150 20 20 10 Subcontracting: 100 units available over the 5-month period Beginning inventory: 0 units Ending inventory required: 20 units COSTS Regular-time cost per unit $100 Overtime cost per unit $125 Subcontract cost per unit $135 Inventory holding cost per unit per month $ 3 Assume that backorders are not permitted. Using the transportation method, what is the total cost of the optimal plan? Px

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