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 profitable going to a foreign country, Does a company like Levi Str...

Does a company like Levi Strauss have an obligation to keep an plant open in the United States if it can be more profitable going to a foreign country? Share your reasoning

Models, under which topic in operations management are models found?

under which topic in operations management are models found?

Public and private service sector - education, Public and Private Service S...

Public and Private Service Sector - Education 1. Life long learning; increased personal cost 2. Increase in competency/vocational qualifications 3. Global study on the

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

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

Analyze and describe each party''s attitudes, Apply general attribution the...

Apply general attribution theory to analyze and explain each party's attitudes and conclusions. Hint: use consensus, consistency, distinctiveness

Explain what problems associated with planned change, What problems associa...

What problems associated with planned change should the OD practitioner be aware of? How might such problems be overcome?

Process strategy at wheeled coach, Read the case study titled, "Process Str...

Read the case study titled, "Process Strategy at Wheeled Coach" on page 310 in the textbook (Operations Management Tenth Edition). On the basis of your reading and your knowledge o

Could you please explain which values i need to calculate, Regarding the tr...

Regarding the trash bag case (Essentials of Business Statistics, chapter 7 exercise 50), I am not sure where the 1.9991 comes from. I tired computing the standard normal distrib

How global businesses subscribe to a global code of conduct, Do you think g...

Do you think global businesses would be willing to subscribe to a global code of conduct?

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