Aggregate Planning(1)

Aggregate Planning(1) - Chapter 13 Aggregate Planing...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 13 Aggregate Planing (Aggregate Scheduling) 1. Introduction: Intermediate Term Planning (3 month to 18 month) Objective: Meet Customer Demand based on forecasting Decisions:Determine the workforce level; Determine the Inventory level; Determine the overtime/outsousing/temp. employees level Issue: Demand is not stable but vary all the time Example 1 on Page 518 Month Demand Jan 900 22 41 50 1100 0 200 Feb 700 18 39 50 900 200 400 Mar 800 21 38 50 1050 400 650 Apr 1200 21 57 50 1050 650 500 May 1500 22 68 50 1100 500 100 Jun 1100 20 55 50 1000 100 0 6200 124 50 Total Cost of Inputs Data Inventory Carrying Cost: $5  per unit /month Subcontracting cost: $20  per unit Average Pay rate: $10  per hour Number of working hours: 8 hours per day Overtime Pay rate: $17  per hour Labor-hours to produce a unit: 1.6 hours per unit Hiring and Training Cost: $300  per unit Layoff Cost: 600 per unit Beginning Inventory 0 unit
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Aggregate Planning(1) - Chapter 13 Aggregate Planing...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online