Explain develop an aggregate production plan, Operation Management

Assignment Help:

ABC Company, a manufacturer of roofing supplies, has developed monthly forecasts for roofing tiles. The forecasted demand and the expected production days for months March to August in 2013 are given below: Month Forecasted demand (units) Production days March 2400 23 April 4500 20 May 2600 22 June 7000 20 July 2000 23 August 3000 22 ABC works 8 regular hours in each working day and past experience shows that one worker takes 1 hour to produce one tile. The company has estimated that there would be 5 production workers working in February 2013 and 250 tiles in inventory at the end of February 2013. Labor Union restricts ABC that overtime hours cannot exceed 20% of straight time (regular) hours in each month. ABC wants to keep at least 200 tiles in inventory at the end of August 2013. ABC has the following cost information: Inventory holding cost = $3/unit/month Backorder cost = $10/unit Subcontracting cost = $30/unit Straight time labour cost = $12/hour Overtime cost = $24/hour Hiring cost = $800 Firing cost = $1600 If ABC allows backorders but does not want to use subcontracting or overtime: a. Find the minimum constant workforce required to meet the above requirement (level production strategy). b. Develop an aggregate production plan with the minimum constant workforce obtained in part (a) (level production strategy). c. Estimate the total cost of the plan in (b). If ABC wants to maintain zero inventory at the end of each month except for August, and does not want to use subcontracting or overtime, d. Develop an aggregate production plan with zero inventory policy (chase strategy with flexible working hours). e. Estimate the total cost of the plan in


Related Discussions:- Explain develop an aggregate production plan

Explain the eight general strategies in the business buying, Describe the e...

Describe the eight general strategies in the business buying decision process.

Explain compile a list of major system life-cycle activities, Compile a lis...

Compile a list of major system life-cycle activities. For each activity on the list, try to find the related supply chain activities. Present your finding in a table with the syste

Plant location, factor relating methods for locating a plant

factor relating methods for locating a plant

Prouction n operation management, Q3. What do you understand by “line balan...

Q3. What do you understand by “line balancing”? What happens if balance doesn’t exist?

Explain what purpose does the project charter serve, a. What purpose does t...

a. What purpose does the Project Charter serve? b. What are the main components or sections of the Project Charter? c. What purpose does the Project Definition Document serve

Compare human assets versus other organizational assets, The primary issue ...

The primary issue is that people want to be challenged. People want to be challenged, at least initially, in terms of their Assignments. They also want to be continuously challenge

Explain the method of job evaluation, Explain the method of job evaluation....

Explain the method of job evaluation. Method of job evaluation: Following are the methods wherein job evaluation is done:- a) Ranking method. b) Classification method.

Features of production and operation management, Features of Production and...

Features of Production and Operation Management 1. Production management is the process of making decisions. 2. Decisions are made regarding transformation of inputs outputs. 3

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