MGO 302 Skeleton Notes 3

MGO 302 Skeleton Notes 3 - MGO 302 Operations Management NC...

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MGO 302 Operations Management © NC Simpson 2010 Note Page Aggregate Planning 85 Aggregate planning- devising a strategy to meet changing demands on the system. We begin with a forecast of demand. .. CAPACITY OPTIONS: 1. How can you change your production capacity to reflect changing demand conditions? 2. How can you not change your production capacity, despite demand conditions? DEMAND OPTIONS: How can you change demand?
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MGO 302 Operations Management © NC Simpson 2010 Note Page Aggregate Planning 86 AGGREGATE PLANNING METHOD ONE: CHARTING Create and interpret an illustration of your proposed strategy. .. Example: Demand Chase Level Month Forecast Strategy Strategy 1 100 100 200 2 350 400 200 3 150 100 200 4 50 100 200 5 50 0 200 6 500 500 200 How can we illustrate this? Month Cumulative Demand Cumulative Chase Strategy Cumulative Level Strategy 1 2 3 4 5 6
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MGO 302 Operations Management © NC Simpson 2010 Note Page Aggregate Planning 87
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MGO 302 Operations Management © NC Simpson 2010 Note Page Aggregate Planning 88
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MGO 302 Operations Management © NC Simpson 2010 Note Page Aggregate Planning 89 Month: 1 2 3 4 5 Demand: 200 1000 300 1200 600 Cost of Increasing the Workforce by One = $500 Cost of Decreasing the Workforce by One = $700 Cost of Producing One Unit in Regular Time = $15 Cost of Producing One Unit in Overtime = $25 Cost of Carrying One Unit in Inventory for One Month = $10 Each person can work 160 hours of Regular Time in a month. Each person can work 80 hours of Overtime in a month. It takes one person one hour to produce one unit. Current size of workforce: 7 people. AGGREGATE PRODUCTION PLAN: Month: 1 2 3 4 5 Regular Production: Overtime Production: Ending Inventory: People Hired: People Fired: Resulting Size of Workforce:
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MGO 302 Operations Management © NC Simpson 2010 Note Page Aggregate Planning 90 AGGREGATE PLANNING EXAMPLE (AGAIN): Month: 1 2 3 4 5 Demand: 200 1000 300 1200 600 Cost of Increasing the Workforce by One = $500 Cost of Decreasing the Workforce by One = $700 Cost of Producing One Unit in Regular Time = $15 Cost of Producing One Unit in Overtime = $25 Cost of Carrying One Unit in Inventory for One Month = $10 Each person can work 160 hours of Regular Time in a month. Each person can work 80 hours of Overtime in a month. It takes one person one hour to produce one unit. Current size of workforce: 7 people. But suppose you pay $10 per hour of idle regular time (Each person is promised 160 hours of regular time). .. AGGREGATE PRODUCTION PLAN: Month: 1 2 3 4 5 Regular Production: Overtime Production: Ending Inventory: People Hired: People Fired: Resulting Size of Workforce:
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MGO 302 Operations Management © NC Simpson 2010 Note Page Aggregate Planning 91 General Aggregate Planning Tips, if you don’t use optimization… Step One: Identify a Strategy Step Two: Implement it, given your data and options Step Three: Determine its total cost Step Four: Go back to step one, pick another strategy, and see if it is
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This note was uploaded on 08/30/2011 for the course MGO 302 taught by Professor Hancock during the Fall '08 term at SUNY Buffalo.

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MGO 302 Skeleton Notes 3 - MGO 302 Operations Management NC...

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