An Electronics Manufacturer Makes Video Security Systems for Parking Lots

question 51

Essay

An electronics manufacturer makes video security systems for parking lots. Demand estimates for the next four quarters are 15, 9, 23, and 17 units. Prepare an aggregate plan that uses inventory, regular time, overtime, and back orders. Subcontracting is not allowed. Regular time capacity is 12 units for quarters 1 and 2, 15 units for quarters 3 and 4. Overtime capacity is 6 units per quarter. Regular time cost is $20,000 per system, while overtime cost is $30,000 per unit. Back order cost is $2000 per system per quarter; inventory holding cost is $500 per unit per quarter. Beginning inventory is zero.
Complete the table of data inputs for solving this aggregate planning problem with the transportation method. Specifically, how many sources are there, and how many destinations?
What is the supply from each source, and the demand of each destination?
What is the cost of each source-destination pair?

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Definitions:

Individualists

are people who prioritize individual rights, independence, and personal achievements over group goals, often seen in Western cultures.

Psychosexual Development

A Freudian concept outlining how personality develops through stages based on the focus of libido, from childhood to adulthood.

Freud

Sigmund Freud was an Austrian neurologist who established the field of psychoanalysis, which involves treating mental disorders by engaging in conversation between the patient and a psychoanalyst.