ch03 - Assignment

ch03 - Assignment - OPER1401 Aggregate Planning Assignment...

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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 Hire Lay off Jan 18 1400 1400 0 0 Feb 20 1600 1600 200 0 Mar 20 1500 1500 0 100 Apr 21 1800 1800 300 0 May 21 2200 2200 400 0 8500 900 100 Cost $68,000.00 $36,000.00 $6,000.00 $110,000.00 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 o/t sub Jan 18 1400 1260 140 0 Feb 20 1600 1400 200 0 Mar 20 1500 1400 100 0 Apr 21 1800
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ch03 - Assignment - OPER1401 Aggregate Planning Assignment...

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