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

. Linear Programming Problem, A paper mill produces two grades of paper viz...

A paper mill produces two grades of paper viz., X & Y. Because of raw material restrictions, it cannot produce more 400 tons of grade X paper & 300 tons of grade Y paper in a week.

Explain ongoing risk exists in any project, Ongoing risk exists in any proj...

Ongoing risk exists in any project. Once a project starts, risk increases. How should one monitor and mitigate risk in a rapidly changing project?

Explain dry cleaner uses exponential smoothing to forecast, A dry cleaner u...

A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 88 percent of capacity; actual usage was 89.6 percent of c

Explain what are merits and demerits of lvdt, What is a transducer? How can...

What is a transducer? How can we classify transducers? On what principles do the variable inductance type of transducers work? What are uses of LVDT for measurement? List uses of t

Explain project management in the form of a cpm, Discuss an example of a wo...

Discuss an example of a work-related project that is able to be broken down into structure, tasks, subtasks, and work packages, and why project management in the form of a CPM/PERT

Explain triangular distribution, An Accute care facility treats non-emergen...

An Accute care facility treats non-emergency patients (cuts, cold, etc.). Patients arrive according to an exponential interarrival-time distribution with a mean of 11 (all times in

Simplex method , Q3. Solve the following Linear Programming Problem using S...

Q3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 4 X1+ X2 2 X1, X2 0

Sunshine enterprises, What is the average value of a loyal customer (VLC) a...

What is the average value of a loyal customer (VLC) at Abby''s restaurants (see Chapter 3)? What is the best way to increase revenue given your VLC analysis

Explain it is important to have a vision, It is important to have a vision....

It is important to have a vision. If you were Jerome Byrd, how would you prepare a new vision for your department?

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