Create a Minimum Cost Chase Plan for the Forecast Shown

question 22

Essay

Create a minimum cost chase plan for the forecast shown in the table. There is no beginning inventory and regular production capacity is 350 units. Overtime costs $20 extra and is limited to 50 units per month and subcontracting is limited to 100 units per month and costs $15 per unit. Back orders cost $40 per unit and there is a cost of $5 per month to hold a unit in inventory. There is room for only 100 units in inventory. What is the total plan cost above regular production cost?
$$\begin{array} { | l | c | l | l | l | l | } \hline { \text { Month } } & \text { Forecast } & \text { Regular } & \text { Overtime } & \text { Subcontracting } & \begin{array} { c } \text { Ending } \\\text { Inventory }\end{array} \\\hline \text { January } & 250 & & & & \\\hline \text { February } & 400 & & & & \\\hline \text { March } & 500 & & & & \\\hline \text { April } & 350 & & & & \\\hline\end{array}$$

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Definitions:

Antipsychotic Medication

Drugs used to manage psychosis, including symptoms such as delusions, hallucinations, and disturbed thought processes, often prescribed in schizophrenia and bipolar disorder.

Symptoms

Signs or indications of a condition or disease experienced by an individual, often leading to a diagnosis.

Schizophrenia

A serious mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Antidepressant Drugs

Medications designed to alleviate symptoms of depression by adjusting the balance of neurotransmitters in the brain.