hw3sol

hw3sol - ISE 410 Solution 3 1 Factors that can be altered...

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ISE 410 Solution # 3 1. Factors that can be altered by an aggregate plan are: Production levels Inventory levels Change of workforce strategy 2. Aggregation is a necessary step in production planning because there are too many products to develop a plan based on computational reasons. 3. Consider the following data set: Period Forecasted Demand 1 50 2 60 3 55 4 100 5 50 6 45 7 40 8 70 9 95 10 260 11 240 12 210 Assume the following: Initial inventory 50 units Cost to carry inventory $25/unit/period Cost of backorders $50/unit/period Production cost (including labor) $500/unit
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Present capacity 110 units/period Cost to change capacity $125/unit 3(a) LEVEL PRODUCTION STRATEGY 1 2 3 4 5 6 7 8 9 10 11 12 Beginning Inventory 50 103 146 194 197 250 308 371 404 412 255 118 Production 103 103 103 103 103 103 103 103 103 103 103 103 SUM = Demand/Forecas t 50 60 55 100 50 45 40 70 95 260 240 210 SUM = 1275 End Inventory 103 146 194 197 250 308 371 404 412 255 118 11 SUM = Backorders 0 0 0 0 0 0 0 0 0 0 0 0
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This note was uploaded on 06/04/2008 for the course ISE 410 taught by Professor Dessouky during the Fall '07 term at USC.

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hw3sol - ISE 410 Solution 3 1 Factors that can be altered...

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