Compute the aggregate production rate, Operation Management

Assignment Help:

The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, has decided that the BackPack Company must have very good customer service.

She has asked you to develop a level aggregate plan using inventories but not back orders. All demand must be met each period. Use the following data to solve the problem:

Problem Data

Cost data

Regular-time labor cost per hour $10.00

Overtime labor cost per hour $15.00

Subcontracting cost per unit (labor only) $84.00

Holding cost per unit per period $10.00

Back-order cost per unit per period $20.00

Hiring cost per employee $600.00

Firing cost per employee $450.00

Capacity data

Beginning workforce 210 employees

Beginning inventory 400 units

Labor standard per unit 6 hours

Regular time available per period 160 hours

Overtime available per period 32 hours

Subcontracting maximum per period 1000 units

Subcontracting minimum per period 500 units

Demand data

Period 1 6000 units

Period 2 4800 units

Period 3 7840 units

Period 4 5200 units

Period 5 6560 units

Period 6 3600 units

You must:

A.) Calculate the aggregate production rate: ________ units

B.) Calculate the appropriate workforce given the aggregate production rate

C.) Show what would happen if this plan were implemented

D.) Calculate the costs of this plan

E.) Evaluate the plan in terms of cost, customer service, operations, and human resources.


Related Discussions:- Compute the aggregate production rate

Case study, Bloomsday Outfitters produces T-shirts for road races. They nee...

Bloomsday Outfitters produces T-shirts for road races. They need to acquire some new stamping machines to produce 30,000 good T-shirts per month. Their plant operates 200 hours per

Define service and manufacturing organizations, Identify and discuss five d...

Identify and discuss five differences between service and manufacturing organizations.

Define level capacity strategy verses just in time system, Define why a lev...

Define why a level capacity strategy could be complicated to adopt for an organisation operating a just in time system? Level capacity strategy Along with a level capacit

Systems approach to process planning and design, Systems Approach to Proces...

Systems Approach to Process Planning and Design Knowledge about operations strategies, product / service designs, technologies of the production system, and markets are used t

Explain types of organizational culture, Choose two specific features of or...

Choose two specific features of organizational structure described in chapters 5, 6, 8, and/or 9 and discuss how these specific features might lead to specific types of organizatio

Inventory management, How goods and service different affecut the following...

How goods and service different affecut the following operation management function of ogqnization

Explain future hold for traditional mass-media advertising, What does the f...

What does the future hold for traditional mass-media advertising?

Practice Question.., 4. (32 points) You and your roommate are planning to o...

4. (32 points) You and your roommate are planning to open “Pizza In The Dorm” to make and distribute fresh pizza from your dorm room. You plan to provide 100% fresh, high quality p

Provide examples of organizational situations, Give examples of organizatio...

Give examples of organizational situations that would call for transformational, transactional or charismatic leadership. I have an example of transformational, just can't quite

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd