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

The ability to rapidly as inexpensively switch production, The ability to r...

The ability to rapidly and inexpensively switch production from one product to another enables which of the following

Forcasting, what are types of forcasting?

what are types of forcasting?

Explain increasing the level of confidence, All other things held constant,...

All other things held constant, increasing the level of confidence for a confidence interval estimate for the difference between two population means will result in a wider confide

Regional regulations and room of expansion, Regional Regulations and Room o...

Regional Regulations and Room of Expansion Regional Regulations: It is important to check at an early stage that the proposed location does not infringe any local regulat

Compute the line efficiency of longest processing time, Balance the assembl...

Balance the assembly line in Exhibit 8.12 for (a) a shift output of 60 pieces and (b) a shift output of 40 pieces. Assume an eight-hour shift, and use the rule, choose the assignab

Briefly analyze two opportunities, Thoroughly research and analyze two oppo...

Thoroughly research and analyze two opportunities and two major threats that united airlines is facing

Explain consistency and standardization, The big problem a franchisor faces...

The big problem a franchisor faces is maintaining quality control; franchisees do not always exhibit strong commitment to consistency and standardization. WHAT IS ANOTHER problem t

Explain different leadership theories, Leaders and Their Leadership Styles ...

Leaders and Their Leadership Styles This week you learned about a number of different leadership theories. Choose two of today's leaders listed below and research on their leade

Factors determining production control, Factors Determining Production Cont...

Factors Determining Production Control 1. Nature of Production: In job oriented manufacturing products and operations designed for some particular order which may or may not b

Line management, what do you mean by "line balancing''? what happens if bal...

what do you mean by "line balancing''? what happens if balance doesn''t exist?

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