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

#facility manger, to find a medium that works across 4 other facility sites...

to find a medium that works across 4 other facility sites on how to properly and effectively maintain facility design, to all model after eachother

Line balancing, what do you understand by line balancing? what happens if b...

what do you understand by line balancing? what happens if balance does not exist?

Explain agreement by union and management, How does the threat of a strike ...

How does the threat of a strike (or actual strike) affect the negotiating process and its tendency to bring about conditions necessary for agreement by union and management?

Modelling, what are the characteristics of a good model

what are the characteristics of a good model

Explain social learning theory explain widespread corruption, How can the s...

How can the social learning theory explain widespread corruption throughout an organization?

Explain spread harmful rumours gossips uses bad language, Sara spread harmf...

Sara spread harmful rumours gossips uses bad language and lack civility in relationship while at work/ in which of the following is sarah engaging in/1.proert deviance/ 2 productio

Describe the types of evidence that you would look for, Discuss the types o...

Discuss the types of evidence that you would look for in order to determine whether a needs analysis has been improperly conducted. How would you know? Why?

Explain original linear programming problem, Create your own original Linea...

Create your own original Linear Programming problem with a minimum of two variables and two constraints. Your problem should be presented in paragraph form and reflected in a LP eq

Explain labour agreements, Outline and explain the three major elements (an...

Outline and explain the three major elements (and their arguments) contained in the controversial question as to whether union security provisions should be negotiated in labour ag

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