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Aggregate Planning Assignment
1. In general, under what conditions might a firm favor a level production plan over a chase plan? A chase production plan over a level plan?
2. Why is it important to update a sales and operations plan on a regular basis, using a rolling time horizon approach?
3. What is the major difference between aggregate planning in manufacturing and aggregate planning in services?
4. You have been given the following information about production of a product for ABC Company:
Facts given
Cost perunit:
$ 1250
OT cost per unit:
$ 18.75
Holding cost:
$ 11100
Lahorhrf unit
8
Labor h rs per emp per month
150.00
Plant capacity
1,800
Cost to hire train emp
$ 801100
Cost to fire emp
$ 500110
Beginning/ ending workforce
90
Beginningimrentory
500
Demand (in units)
Period 1
1,710
Period 2
2,160
Period 3
1,440
Period 4
1,200
Period 5
Z048
Period 6
2,400
Period 7
1,740
Period 8
1,500
a. Develop a level production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.
b. Develop a chase production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.
c. If you had to recommend a plan, which would you choose? What are the advantages / disadvantages of this recommended plan?
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