ch03 - Assignment

ch03 - Assignment - requirements, and allow inventory to...

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OPER1401 Aggregate Planning Assignment Name: December Production = 1400 units Overtime Cost = $ 24 / hour Labour Cost = $16 / hour Hiring cost = $40 / unit hired Sub-contract cost = $15 / unit Layoff cost = $60 / unit Inventory carrying cost = $2/month / unit Labour hours to produce a unit = .5 PLAN A Vary the workforce to exactly meet the demand requirements. Chase strategy. Available Forecast Period Days Demand Production Jan 18 1400 Feb 20 1600 Mar 20 1500 Apr 21 1800 May 21 2200 PLAN B Produce at a constant rate of 70 units / day, your first capacity option is to work overtime to satisfy additional demand. You can only produce a maximum of 200 units on overtime in any month, additional demand above that will be satisfied by sub-contracting Available Forecast Period Days Demand Production Jan 18 1400 Feb 20 1600 Mar 20 1500 Apr 21 1800 May 21 2200 PLAN C Keep a stable workforce by producing at a constant rate equal to the average
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Unformatted text preview: requirements, and allow inventory to fluctuate. Available Forecast Period Days Demand Production Jan 18 1400 Feb 20 1600 Mar 20 1500 Apr 21 1800 May 21 2200 . PLAN D Produce at a rate of 70 units per day and subcontract to satisfy the balance of your demand forecast requirements. Available Forecast Period Days Demand Production Jan 18 1400 Feb 20 1600 Mar 20 1500 Apr 21 1800 May 21 2200 PLAN E Produce at a rate of 70 units per day and use overtime to satisfy the balance of your demand forecast requirements. Available Forecast Period Days Demand Production Jan 18 1400 Feb 20 1600 Mar 20 1500 Apr 21 1800 May 21 2200 Which of the above plans should you select and why? Cost of the plan selected ....
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ch03 - Assignment - requirements, and allow inventory to...

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