To optimize the aggregate plan, click on the Solver button. The optimal aggregate plan, shown in Cells B5:N16, provides the best use of available resources and subcontracting to meet demand over the next three years. The total cost of this aggregate plan is shown in Cell B35. The amount of private warehouse space leased is shown in Cell O5.
How would the aggregate
plan change if subcontracting cost $120 instead of $100 per 1,000 lbs.? Do you
expect the amount of private warehousing leased to change? hint
answer
How would the aggregate plan change if subcontracting if subcontracting in any period is limited to 5,000? Do you expect the amount of private warehousing leased to change? hint answer
Copyright 2001, Sunil Chopra