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

Find fair price for the insurance policy, A1 Inc. has $1 million in assets ...

A1 Inc. has $1 million in assets at a job site and, applying a risk transfer approach, wishes to address risk by taking out an insurance policy. The insurance carrier provided its

Explain use technology and information resources to research, Imagine that ...

Imagine that you are a senior manager for one of the following companies: • Apple • Burger King • Nike • General Mills Create a market entry strategy along with a st

Industrial society - operations function, Industrial Society - Operations F...

Industrial Society - Operations Function In the industrial society, estimated during the period of growth of industrialisation roughly 1820-1920, machines and the production o

Why employee behaviour and performance with the needs, If you were CEO of y...

If you were CEO of your company what would you do differently to your compensation and benefits plan to make it more effective in aligning employee behaviour and performance with t

Explain what is the value creation frontier, 1.Why does each generic busine...

1.Why does each generic business model require a difficult set of business-level strategies? Give examples of pairs of companies in: (a) the computer industry; (b) the electronics

Why must you begin a case analysis with a financial analys, Why should you ...

Why should you begin a case analysis with a financial analysis? When are other approaches appropriate?

Explain dedicated cell production in modern manufacturing, Explain about th...

Explain about the dedicated cell production in modern manufacturing environment. Dedicated cell production: Traditional production has been regarding the specialisation o

Process of procurement of raw material and components, Explain the process ...

Explain the process of the procurement of raw material and components. Managing the procurement of raw material and components into the production process of an organisation ca

Communication skills, whether writing, listening, speaking, or attending me...

whether writing, listening, speaking, or attending meetings, communication skills are critical to your success in university and work place.

Quantitative technology in management, what are the challenges of quantita...

what are the challenges of quantitative technology in management

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