chapter13_ls - costs per unit: Regular @ 2, Overtime @ 3,...

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Lecture Suggestions - Chapter 13 Example 2: Aggregate Planning 1. Select the Example 2 worksheet 2. 3. 4. 5. 6. cost for the regular production is computed (row 18) to be 560 per period for a total of 3,360. 7. shortages in periods 3, 4, and 5. There is a total (net) shortage of 120 units which must be produced on overtime. 8. 40 units in each of periods 3, 4, and 5. Point out that the cost of overtime production is computed (row 20) to be a total of 360. 9. Point this out both in rows 13 and 14 in the table and on the graph in the upper right hand corner. Also point out that the cost of inventory is computed (row 23) to be a total of 520 and it is based on the average inventory level (row 15). 10. of 400 (row 24). 11. 12. show that the total cost will be higher in either case. Clear worksheet (press Clear and confirm with OK). Use spinner button to set number of periods = 6 . Enter the following
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Unformatted text preview: costs per unit: Regular @ 2, Overtime @ 3, Inventory @ 1 Backorders @ 5. Enter forecast for each period in row 5: 200, 200, 300, 400, 500, 200 Enter the regular output for each period in column 7: 280, 280, 280, 280, 280, 280. Note that the Point out that Output-Forecast (row 11) shows excess production in periods 1, 2, and 6 but Enter overtime production in row 9, since the maximum overtime is 40, it is optimal to schedule Trace the buildup of inventory in periods 1, 2, and 3 and the depletion of inventory in periods 4 and 5. Also point out that there is a backorder of 80 units from period 5 which made up in period 6 at a cost Point out in the graph in the lower right hand corner allocation of the various costs by period . Finally, you may want to shift the overtime production , either 1 period earlier or 1 period later and...
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