Use This Information to Answer the Following Questions

question 35

Essay

Use this information to answer the following questions.
A beer distributor wants to prepare an aggregate plan for the next 6 weeks.Demand can be met using regular time production,overtime production,or a combination of both as illustrated below:

-Refer to the table above.Assume that the beer distributor has the option of "subcontracting" beer cases to supplement the existing capacity.Subcontracting can handle a maximum of 5 cases per week.Subcontracting cost per case is $80.Also,due to an upcoming holiday season,the beer distributor wants to maintain a safety stock of at least 5 cases per week.Use Excel to formulate and solve this multiperiod production scheduling problem.

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Definitions:

Marketing Loan Program

A federal farm subsidy under which certain farmers can receive a loan (on a per-unit-of-output basis) to plant a crop and then, depending on the harvest price of the crop, either pay back the loan with interest or keep the loan proceeds while forfeiting their harvested crop to the lender.

Food, Conservation, and Energy Act

A comprehensive U.S. law enacted periodically that covers a wide range of agricultural and food programs, including farm subsidies, nutrition assistance, and land conservation efforts.

Crop Price

The amount of money that farmers receive for the agricultural products they produce, which can vary based on supply and demand.

Loan Price

The total cost associated with borrowing money, which includes the interest rate and any other fees or charges.