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

Define the functional flexibility workforce, Define the functional flexibil...

Define the functional flexibility workforce. Functional flexibility (task flexibility or multi-skilled employees) associates breaking down traditional occupational restricti

Find an example where break-even analysis could be applied, In your own org...

In your own organisation find an example where break-even analysis is/could be applied.

Johnson''s rule, Please help with sequencing the following jobs; T,U,V,W,X,...

Please help with sequencing the following jobs; T,U,V,W,X,Y,Z (WORK CENTER 1 - 15,7,4,7,10,4,7) (WORK CENTER 2 - 3,9,10,6,9,5,8) RESPECTIVELY TO THE JOBS. THE REST I WILL CALCULATE

Explain symptoms related to customer contact, Unit 1 Discussion Suppose you...

Unit 1 Discussion Suppose you were conducting a marketing analysis for a new textbook about technology management. What would you need to know to identify a market segment? How wou

Changes in employment by sector - operations function, (1) Firstly, conside...

(1) Firstly, consider the changes in employment by sector over the period charted in the figure (1850 - 2000). What factors do you think contributed to the reduction in employment

Explain managerial problem solving discuss the pitfalls, Using managerial p...

Using managerial problem solving discuss the pitfalls of satisficing and escalation of commitment

Determine the optimal selling price, A manufacturer sells 150 tables a mont...

A manufacturer sells 150 tables a month at the price of $200 each. For each $1 decrease in price, he can sell 25 more tables. Each table costs $125 to make. (a) The demand (pric

OR, Explain OR Models

Explain OR Models

Statistical aspects of variability, Statistical Aspects of Variability  ...

Statistical Aspects of Variability  Consider a pharmaceutical process producing paracetamol tablets, for which the weight of the active ingredient (nominally 500 mg per tablet

Determine the supply and aggregate supply curve , In the food processing se...

In the food processing sector of a country, 100 identical small firms produce frozen fruits. Each producer is a price-taker in the market and faces the following cost conditions:

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