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

Describe the three fundamental principles of statistical, Explain the three...

Explain the three fundamental principles of statistical thinking. Use an example from either your personal life or a work process to illustrate

Explain purpose of completing the applied project, Students will choose lea...

Students will choose leader/s for the purpose of completing the applied project, which will be completed in two separate components (Mid Term and Final)-see syllabus, each of which

Explain what is the agency problem, What is the agency problem? What steps ...

What is the agency problem? What steps can be taken to solve it? Why is it important for managers and organizations to behave ethically?

Explain the financial ratio analysis on harley davidson inc, What is the fi...

What is the financial ratio analysis on Harley Davidson Inc 2008?

Operational Management, I have a take home exam that I need to be solved 10...

I have a take home exam that I need to be solved 100 % correct , please . I need it within 23 hours EXACTLY from now please . Thank you so much and I am really looking forward to s

Explain layout need to be adjusted as demand for same goods, Base on the ca...

Base on the case study: Weldon Hand Tools; how would the layout need to be adjusted as demand for this and similar products builds up?

Performance management, Performance Management Discuss Performance Ma...

Performance Management Discuss Performance Management in the context of the identifying the relevant School of Management Theory.  Identify positives and negatives in the app

Explain job evaluation, Explain Job Evaluation. A combination of short ...

Explain Job Evaluation. A combination of short statements which describe both the necessary requirements of the particular job and the work to be performed is termed as Job Eva

Explain what is the expected growth rate, Sidman Products' common stock cur...

Sidman Products' common stock currently sells for $51 a share. The firm is expected to earn $6.10 per share this year and to pay a year-end dividend of $2.40, and it finances only

Explain chemical pollutant, A veterinarian is estimating the degree of asso...

A veterinarian is estimating the degree of association between the exposure/non-exposure of cats to a chemical pollutant and the incidence of a particular respiratory illness among

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