CH_13_10_Edition

CH_13_10_Edition - Aggregate Planning CHAPTER 13 AGGREGATE...

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Aggregate Planning CHAPTER 13 AGGREGATE PLANNING PROBLEMS P1. The Snow Mountain Ski Company produces pairs of skis. Its business is highly seasonal, and for the next fiscal year it has the following forecasts of the demand for pairs of its skis for each month. The fiscal year runs from July 1 to June 30. Month Forecast Month Forecast July 125 January 500 August 150 February 450 September 300 March 200 October 350 April 150 November 400 May 50 December 600 June 25 Total Demand 3,300 The company has a beginning inventory on July 1 of 50 pairs of skis. The company has a capacity of 16 pairs of skis per eight-hour shift, and it works one shift per day, for 48 five-day weeks per year. Here are financial data on producing, storing, and selling skis. Variable cost during the day shift (8 AM to 5 PM): $60.00 per pair Variable cost during the night shift (5 PM to 2 AM): $70.00 per pair Cost of storing skis for one month: $2.00 per pair in the average inventory Cost of acquiring skis from a supplier: $64.00 per pair The selling price of skis: $150.00 per pair Skis may not be backordered, since they must be available during the skiing season. In case of shortages, the company does have options, however. It may schedule half of a night shift (four hours, with a capacity of 8 pairs of skis); or it may schedule a full night shift (8 hours with a capacity of 16 pairs of skis); or it may purchase from an outside supplier. In the event of surplus production, the company may reduce the day shift to half-time (4 hours per day, with a capacity of 8 pairs of skis). It will not close the plant entirely. a. Construct an aggregate planning schedule for the fiscal year (look to Example 1 of Chapter 13 of your textbook for an example format). Assume that the company schedules one 8-hour shift per working day with no outside purchases. Unsold pairs of skis will be kept in inventory. b.
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This note was uploaded on 04/20/2011 for the course TOM 301 taught by Professor Williamcosgrove during the Spring '08 term at Cal Poly Pomona.

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CH_13_10_Edition - Aggregate Planning CHAPTER 13 AGGREGATE...

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