Use a total production capacity of 6000 cases a month

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Consider problem 8 in the chapter titled Aggregate Planning (page 197). Use a total production capacity of 6,000 cases a month: 5,000 cases regular time, 400 overtime, and 600 subcontracting. Develop an aggregate plan in each of the following two cases and then calculate the total cost over the planning horizon. (a) Using chase strategy . Constraints : Cannot exceed capacity. No shortages are permitted. Avoid subcontracting as much as possible. Show the basic plan and then make adjustments to achieve a final plan. Explain your adjustments. Then calculate total costs . (b) Using level strategy . Constraints : Cannot exceed capacity. No shortages are permitted. Inventories cannot exceed 2200. Keep plan as level as possible (even if that means using more subcontracting). Show the basic plan and then make adjustments to achieve a final plan. Explain your adjustments. Then calculate total costs . Use tables similar to the ones shown below. Do not forget to explain adjustments. …. Strategy May June July Aug. Sept. Oct. Forecast Basic Plan Inventory Adjustment 1 Inventory Adjustment 2 Inventory Producti on May June July August Septem ber October Total Total Regular OT Sub- Contr. Inventory Cost Regular OT Sub- Contr. Inventory Total cost 3a59b29c3a57b989c762c9859753c63dfc830d03 Page 2
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  • Spring '10
  • panwalker
  • Cycle Time, Trigraph, Capacity utilization, 8 hours

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