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Sales & Operations Planning ASSUME THE MANAGEMENT:

show the aggregate plan of Bradford manufacturing plant case study
Sales & Operations Planning ASSUME THE MANAGEMENT: (1) Wants to implement a strategy with overtime Bradford Case (2) There are no limits on number of lines used among existin (3) Overtime is allowed up to 2 hours per day Input Data Beginning inventory of January 200,000 Employees hours paid per day 8 Productive hours (Standard hours) per day 7.5 Maximum overtime allowed per day (hours) 2 Line productivity (Standard production rate for each line) 450 Number of cases produced per hour per production line Number of employee per line 6 Number of production lines existing used 15 Initial number of production lines used 10 Initial number of employees 60 Hiring and training cost per employee $5,000 Firing cost per employee $3,000 Standard employee wage (pay) rate $20 Paid per employee per hour Overtime wage (pay) rate $30 Paid per employee per hour Holding cost per case per quarter $0.25 Stockout cost per case per quarter $2.4 Quarter (Week Numbers) Month 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) Demand Forecast 2,000,000 2,200,000 2,500,000 2,650,000 Safety Stock 307,692.3 338,462 384,615 407,692 # of working days 65 65 65 65 Bradford Case Month Prev Q. 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) Production Requirement 2,107,692.3 1,852,211.5 1,912,115.4 2,098,942.3 # Overtime Hours Used # Production Lines Used 10 # of Workers Used 60 Regular Production Level Overtime Production Level Ending Inventory 200,000 Hired Fired Units Excess of Safety Stock Cost 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) Labor Cost (Regular Wage) Overtime Cost Inventory Holding (Storage) Cost Backorder Cost Hiring Cost Firing Cost Total Cost of Bradford Case Determine number of production lines and overtime hours to use in each quarter to minimize total cost
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