10_Aggregate_Planning_Example__Bradford_

10_Aggregate_Planning_Example__Bradford_ - 1,000 case...

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Unformatted text preview: 1,000 case units. Quarter (Week Numbers) 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) 1st (Next Year) Notes Forecast Demand 2,000 2,200 2,500 2,650 2,200 Each number is a 13 week forecast. Ending Inventory Target 338 385 408 338 Planning Data Numbers Units of measure Initial number of employees 60 employees Employees per line 6 employees Standard production rate (each line) 450 Cases per hour Employee pay rate $20.00 per hour Overtime pay rate $30.00 per hour Standard hours per shift 7.5 hours Paid hours per shift 8.0 hours Maximum overtime per day 2.0 hours Inventory carry cost $1.00 $ per case (per qtr) Stockout cost $2.40 $ per case Profit margin loss Employee hiring and training cost $5,000.00 $ per employee Employee layoff cost $3,000.00 $ per employee Working days per quarter 65 days Aggregate Plan Quarter (Week Numbers) 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) Notes Lines run 10 10 10 10 Input Overtime hours per day Input Beginning Inventory 200.00 393.75 387.50 81.25 Production 2,193.75 2,193.75 2,193.75 2,193.75 Expected Demand 2,000.0 2,200.0 2,500.0 2,650.0 Ending Inventory 393.75 387.50 81.25-375.00 Deviation from Inventory Target 55.75 2.50-326.75-713.00 Employees 60 60 60 60 Cost of Plan Annual Totals Labor Regular Time $624,000 $624,000 $624,000 $624,000 $2,496,000 Employees are paid for 8 hrs work per day. Labor Overtime $0 $0 $0 $0 $0 Hiring and Training $0 $0 $0 $0 $0 60 employees are employeed initially. Layoff $0 $0 $0 $0 $0 Inventory Carry Cost $55,750 $2,500 $0 $0 $58,250 Based on positive deviation from target x 1000 Stockout Cost $0 $0 $0 $900,000 $900,000 Based on negative deviation from target x 1000 Quarter Budget $679,750 $626,500 $624,000 $1,524,000 $3,454,250 Total Cost of Plan $3,454,250 This is calculated based on 6 weeks of future forecast demand. 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) 1st (Next Year) 500 1,000 1,500 2,000 2,500 3,000 Forecast De mand by Quart er (1,000 Case Unit s) Qtr Wk 1st 1 10 200.0 168.8 153.8 214.9 1.4 450.00 153.8 168.8 214.9 338.0-123.10 0.0 0.1614 0.9260 2 10 214.9 168.8 153.8 229.8 1.5 450.00 153.8 168.8 229.8 338.0-108.19 0.00....
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This note was uploaded on 12/28/2011 for the course SCM 372 taught by Professor Cook during the Fall '11 term at Michigan State University.

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10_Aggregate_Planning_Example__Bradford_ - 1,000 case...

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