hr_om11_ism_ch13

Ca level plan will cost 180000 while a hiring and

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Unformatted text preview: Layoff: $60/unit Subcontracting: $60/unit Stockout: $100/unit 13.11 Initial data: Costs (per unit) Reg Time Overtime Subcontract Holding Stockout Hiring Layoffs = = = = = = = $ 30 $ 15 extra per unit not available   10   50   40   80 Initial inventory Units last period = = 0 1,500 196 CHAPTER 13 A G G R E G A T E P L A N N I N G (a) The Hiring and Layoff plan: Period Demand Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 1,400 1,200 1,500 1,300 5,400 Cost Total Cost:  $214,000 Reg. Time Production Change 1,400 1,200 1,500 1,300 5,400 @$30/unit $162,000 Hiring 0 0 300       0 300 @$40/unit $12,000 –100 –200  300 –200 Layoffs 100 200 0 200 500 @$80/unit $40,000 Overtime production = $0 Subcontract = $0 and Inventory holding and shortage cost = $0 (b) The Level plan: Period Demand Quarter 1 1,400 Quarter 2 1,200 Quarter 3 1,500 Quarter 4 1,300 Total 5,400* Cost Total Cost:   $180,000 * Reg. Time Production    1,350    1,350    1,350    1,350 5,400 $162,000 Inventory –50 100 –50   0 Holding 0 100 0 0 100 $1,000 Shortage Change 50 0 50 0 100 $5,000 Hiring –150   0   0   0 (5,400/4) = 1,350 = average demand. (c) A Level plan will cost $180,000, while a Hiring a...
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This document was uploaded on 01/24/2014.

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