4. Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the...
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4. Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy cach quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. (20 Points) Initial Inventory Level = 1,000 units Regular Time = $15 Lost Sales Cost/Unit = $24 Inventory Carry Cost per unit - $3 Quarter 1 2 Totals Jet Ski Engine 10,000 15,000 16,000 3,000 Snowmobile Engine 9,000 7,000 19,000 10,000 Total Engines 19,000 22,000 35,000 13,000 Average Demand Rate/Quarter 22,000 units Regular Time Production Rate 22,000 units 44,000 45,000 89,000 Beginning Inventory 600 400 1,000
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