ch03 - In-Class Assignment

ch03 - In-Class Assignment - OPER1401 Aggregate Planning...

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OPER1401 Aggregate Planning June Production = 400 units Overtime Cost = $ 9.60 / hour Labour Cost = $6.40 / hour Hiring cost = $50 / unit Sub-contract cost = $6 / unit Layoff cost = $75 / unit Inventory carrying cost = $2/unit / month Labour hours per unit = 1.25 PLAN A Vary the workforce to exactly meet the demand requirements. Chase strategy. Available Forecast Period Days Demand Production July 20 400 August 19 500 September 21 550 October 19 700 Cost of Plan A November 20 800 December 21 770 PLAN B Produce at a constant rate of 20 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 July 20 400 August 19 500 September 21 550 October 19 700 Cost of Plan B November 20 800 December 21 770 PLAN C Keep a stable workforce by producing at a constant rate equal to the average
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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 - In-Class Assignment - OPER1401 Aggregate Planning...

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