Ap-2-BB Copy - Aggregate Planning-I I Developing a Cost-Optimal Plan These notes are prepared by Dr Ashok Kumar for Classroom discussion adapting

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Unformatted text preview: Aggregate Planning-I I Developing a Cost-Optimal Plan These notes are prepared by Dr. Ashok Kumar for Classroom discussion adapting first four slides from Stevenson and Hefty case from Schroeder. Please do not reproduce part or whole without permission. The Hefty Beer Company is constructing an aggregate plan for the next 12 months. Although several types The Hefty Beer Company is constructing an aggregate plan for the next 12 months. Although several types of beer are brewed at the Hefty plant and several container sizes are bottled, management ha decided of beer are brewed at the Hefty plant and several container sizes are bottled, management ha decided to use gallons of beer as the aggregate measure of capacity. The demand for beer over the next 12 to use gallons of beer as the aggregate measure of capacity. The demand for beer over the next 12 months is forecast to follow the pattern shown below. Notice how this demand usually peaks in the months is forecast to follow the pattern shown below. Notice how this demand usually peaks in the summer months and is decidedly lower in the Winter. summer months and is decidedly lower in the Winter. 1. 1. The management of the Hefty brewery would like to consider three aggregate plans: The management of the Hefty brewery would like to consider three aggregate plans:- Level work force. Use inventory to meet peak demands.- Level work force. Use inventory to meet peak demands. 1. 1.- Level work force with overtime. Use 20 percent overtime along with inventory, as necessary, in - Level work force with overtime. Use 20 percent overtime along with inventory, as necessary, in to meet peak demands. to meet peak demands. 2. 2.- Chase. Hire and lay off workers each month as necessary to meet demand....
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This note was uploaded on 04/11/2011 for the course FIN 322 taught by Professor Gillette during the Winter '07 term at Grand Valley State University.

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Ap-2-BB Copy - Aggregate Planning-I I Developing a Cost-Optimal Plan These notes are prepared by Dr Ashok Kumar for Classroom discussion adapting

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