Costs demonstration only no questions on the exams ex

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Unformatted text preview: costs. (Demonstration only, no questions on the exams ). Ex. 7. Example 1 Demand for 4 products for the next month is given Part (a): Calculate aggregate (demand) requirement in term of Calculate the standard product “AA” Time [Hrs. /unit] AA BB CC DD 2.0 3.0 1.5 1.0 Demand [units] 2000 1000 2400 1200 Demand in standard units 2.0 * 2000 / 2.0 = 2000 2.0 3.0 * 1000 / 2.0 = 1500 1.5 * 2400 / 2.0 = 1800 1.0 * 1200 / 2.0 = 600 = 5900 Aggregate requirement Generally we will use one period = one month How much time do we need to meet demand for each product? product? How many standard units can we make in the same time? Part (b): What to do if capacity in standard units is 5000? What Overtime / temporary workers / subcontract (out sourcing), produce in the prior period, back order (produce in future periods), don’t meet demand. 3 4 product? Ex.2 How much time do we need to meet demand for each product? How many standard units can we make in the same time? Rate [unit/day] E D I 200 160 60 Demand [units] 3000 880 120 Demand in standard units (3000 (3000 / 200) * 160 = 2400 ( 880 / 160) * 160 = 880 ( 120 / 60) * 160 = 320 = 3600 Examples 1 and 2: comparison How much time do we need to meet demand for each product?...
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This note was uploaded on 01/31/2011 for the course MGMT 361 taught by Professor Panwalker during the Spring '10 term at Purdue University-West Lafayette.

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