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 behavior and performance with the objectives, The effectiveness of ...

The effectiveness of any compensation system to attract, retain and align employee behavior and performance with the objectives of the enterprise is dependent upon management credi

Explain middle manager helping to implement a new corporate, You are a midd...

You are a middle manager helping to implement a new corporate cost-cutting strategy, and your meeting scepticism, resistance, and in some cases, outright hostility from your subord

Define elements of finagle a bagels operating system, Now, please answer th...

Now, please answer the question regarding operations management. How would you describe the elements of Finagle a Bagels operating system?

How reduce the safety stock, The annual demand for a product is 15,600 unit...

The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from order

Explain the factors affecting motivation, Explain the factors affecting mot...

Explain the factors affecting motivation . Factors influencing motivation: Achievement-Personal satisfaction in problem solving and job completion. Advancement-Promot

Explain inefficiency factor, A JIT system uses kanban cards to authorize mo...

A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 93 parts per hour while running. The manager

Explain the framework of the general model of planned change, Describe the ...

Describe the framework of the general model of planned change. Include a discussion of each activity and a typical sequence of events.

Write an essay on porter''s five forces industries, Give an essay on Porter...

Give an essay on Porter's 5 forces industries (the auto or shoe industry) A 75 to 100 words/references.

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