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 level of competitive intensity in an industry, According to Porter,...

According to Porter, what determines the level of competitive intensity in an industry?

Libertarian view on the importance of consumer rights, Compare a Utilitaria...

Compare a Utilitarian and a Libertarian view on the importance and enforcement of consumer rights.

Locating production and service facilities, if you expand your existing com...

if you expand your existing company by opening a new divition in a foreign country, shouldthe new divistion be staffed by local personnel or by personnel imported from the parent o

Explain what is the break even quantity beyond, The first process is expect...

The first process is expected to incur $280,000 of fixed cost and add $60 of variable cost for each unit produced. The second process has fixed costs of $200, 00 and adds $70 per e

Design and management of an efficient operating system, Question 1: (a)...

Question 1: (a) Using appropriate examples, explain in details the different approaches that operations managers can use to reconcile capacity and demand. (b) Critically S

Explain personal industry experiences, Discuss the four types of process st...

Discuss the four types of process strategies and give an example of each. Also, please share any personal industry experiences (if any) with each process strategy.

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

Explain functions and objectives of trade unions, Explain functions and obj...

Explain functions and objectives of trade unions. Functions and Objectives of Trade Unions: The functions of trade unions are: (i) The provision of friendly services which

Dipict a competency model, Develop a competency model of a job held by a fr...

Develop a competency model of a job held by a friend, spouse or partner

Explain what is the economic production quantity, Race One Motors is an Ind...

Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 300 per day, and it uses these

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