Question: Consider the following Aggregate Planning problem.
| Cost data |
|
|
|
Demand Forecast |
| Wage /hour |
$15.00 |
|
|
Month |
Demand |
| OT pay /hour |
$22.50 |
|
|
1 |
4200 |
| SC rate/unit |
$75.00 |
|
|
2 |
4400 |
| Carrying Cost |
$ 7.00 |
|
|
3 |
4800 |
| Hiring cost |
$500.00 |
|
|
4 |
5100 |
| Firing cost |
$650.00 |
|
|
5 |
5000 |
|
|
|
|
6 |
5500 |
|
|
|
|
7 |
6000 |
|
|
|
|
8 |
5900 |
|
|
|
|
|
40900 |
| Other Data |
|
|
Init Condition |
|
|
| STD hrs |
2.5 |
|
Workers on roll |
|
70 |
| Hours/day |
8 |
|
Current invenntory |
|
300 |
| days/month |
22 |
|
Safety stock |
|
250 |
| OT linit |
30% |
|
|
|
|
Note: Hiring/fining costs are based on number of workers, not daily production rate from one month to the next.
A. Answer the following for a "Chase" plan.
a. What is the production rate per worker per day? (round to 5 decimal places)
b. What is the production rate per worker per month? (round to 5 decimal places)
c. What is the wage rate per worker per month?
d. What is the cost of production per unit using overtime?
e. For the given data, develop a complete "Chase" plan and the corresponding cost for this problem. (Roundup number of workers needed each Month)
B. Answer the following for a "Level" plan.
a. What is the net total required production for the entire planning horizon?
b. What is the required production rate per month? (round to 2 decimal places)
c. How many workers will be needed for this production rate found in (b) above? (roundup to the nearest integer)
d. Develop a "Level" plan and the corresponding cost for this problem. Round to 2 decimal places when required.