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

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OPER1401 Aggregate Planning Review December Production = 2550 Overtime Cost / hour = $27.00 Labour Cost / hour = $18.00 Hiring cost / unit = $50.00 Sub-contract cost / unit = $22.00 Layoff cost / unit = $80.00 Inventory carrying cost /month / unit = $12.00 Labour hours to produce a unit = 0.75 PLAN A Vary the workforce to exactly meet the demand requirements. Chase strategy. Available Forecast Period Days Demand Production Jan 22 2550 Feb 19 2500 Mar 18 2600 Apr 21 3600 May 20 3950 PLAN B Produce at a constant rate of 110 units / day, your first capacity option is to work overtime to satisfy additional demand. You can only produce a maximum of 500 units on overtime in any month, additional demand above that will be satisfied by sub-contracting Available Forecast Period Days Demand Production Jan 22 2550 Feb 19 2500 Mar 18 2600 Apr 21 3600 May 20 3950 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 22 2550 Feb 19 2500 Mar 18 2600 Apr 21 3600 May 20 3950 . PLAN D Produce at a rate of 100 units per day and subcontract to satisfy the balance of your demand forecast requirements. Available Forecast Period Days Demand Production Jan 22 2550 Feb 19 2500 Mar 18 2600 Apr 21 3600 May 20 3950 PLAN E Produce at a rate of 100 units per day and use overtime to satisfy the balance of your demand forecast requirements. Available Forecast Period Days Demand Production Jan 22 2550 Feb 19 2500 Mar 18 2600 Apr 21 3600 May 20 3950 Which of the above plans should you select and why? Cost of the plan selected ....
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This note was uploaded on 08/22/2009 for the course OPER 1401 taught by Professor Robshepherd during the Fall '05 term at Niagara College.

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

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