ProductionPlanningII(3,27)

ProductionPlanningII(3,27) - Production Planning Basic...

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1 Production Planning – Basic Methods Example: Company wishes to develop aggregate production plans based on the following demand forecast for six months: Note that Ending inventory in December is 500 units and the firm would like to have 600 units on hand at the end of June. ASSUMPTION: No shortage is allowed. The company considers the two following production plans. Period Forecasted Demand 1 1280 2 640 3 900 4 1200 5 2000 6 1400 Period Net Forecast Zero Inventory Plan Constant Work Force Plan Demand Production Workforce Production Workforce 1 780 780 267 1205 411 2 640 640 182 1445 411 3 900 900 342 1084 411 4 1200 1200 315 1566 411 5 2000 2000 621 1325 411 6 2000 2000 910 903 411
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2 Production Planning – Basic Methods Question: What are the differences between the two plans? What costs will each incur? Different companies will respond in different ways 0 1000 2000 3000 4000 5000 6000 7000 8000 0 1 2 3 4 5 6 7 Pe r iod Production Level
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3 Production Planning – Zero Inventory Plan
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This note was uploaded on 10/08/2011 for the course IE 383 taught by Professor Leyla,o during the Spring '08 term at Purdue University-West Lafayette.

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ProductionPlanningII(3,27) - Production Planning Basic...

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