Level capacity plan, Operation Management

Assignment Help:

Level Capacity Plan

The inventory size is varied keeping the workforce size and utilization of work constant. The number of workers ( working size) is kept constant throughout the time period under consideration. During months of low demand the excess units required over the units produced are taken from the inventory. The benefit of this plan is that the cost of hiring and training new. Workers is zero. Also the cost of laying off workers is zero, as the workforce size is constant. The employee morale is high due to sense of job security. During periods of low demand, there is a high inventory cost due to its large size.

2427_Level  capacity plan.png

Figure: Level Capacity Plan

Figure shows the level capacity plan of a company manufacturing a product on produce to stock and sell basis. In the first quarter aggregate demand is less than production and inventory builds up till the end of the First Quarters . in the second third and fourth quarters are inventory levels Decline because production is less than the aggregate demand. In the fifth Quarter the production is more than the aggregate demand and hence Inventory builds up again.


Related Discussions:- Level capacity plan

How to prove inadequate for governing the new nation, Why did the Articles ...

Why did the Articles of Confederation prove inadequate for governing the new nation? (Think about: national unity under the Articles; lack of an executive branch; economic issues

Explain the four functions of management, Need help with a paper? Prepar...

Need help with a paper? Prepare a 700- to 1,050-word paper in which you define the four functions of management (planning, organizing, leading, and controlling). In your paper,

Explain the current break-even point in dollars is, The local convenience s...

The local convenience store makes bread. Currently, their oven can produce 50 pieces of bread per hour. It has a fixed cost of $2,000, and a variable cost of $0.25 per bread. The o

Outline one attribute or capacity of servant leadership, 1 Address the foll...

1 Address the following questions and concepts: 1) Describe one attribute or capacity of servant leadership and explain how and where you might apply this pri

When is the ordering cost decreased, When is the ordering cost decreased? ...

When is the ordering cost decreased? Ordering cost falls while the size of order increases. It is because when the size of order raises for the similar quantity of inventory pu

Describe understand all the numbers in the table, Could you please explain ...

Could you please explain to be how the point of prediction is computed in problem 14.48 (question b) from Essentials of Business Statistics. I understand all the numbers in the tab

Explain creation of a roadmap for a strategic plan, What things should be t...

What things should be taken into consideration in the creation of a roadmap for a strategic plan? What are examples of external and internal change agents? What role do change agen

Assignment Brief : Staples Case Study, Assignment Brief : Staples Case Stud...

Assignment Brief : Staples Case Study Staples is a mobile phone and accessories retailer based in England, owned by Lewis. The business started with a single shop, which David has

Operation strategy for globaltel in Asia, write a list of elements that sho...

write a list of elements that should be included in an operations strategy for global tel

Explain what ethical considerations your response, Please explain in detail...

Please explain in detail what you would do for the following scenario: A good friend of yours from college who had a wild reputation is applying at your company. The HR manager cat

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