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Technology & Engineering – A Case Study Aggregate Planning Questions

Case Study on Cool Engineering Company – Aggregate Planning Assignment Answer

Words: 3000


 If You Need Technology & Engineering – A Case Study Aggregate Planning Questions? Aggregate planning refers to developing, maintaining, and analyzing the approximate scope of a company’s operations. provides Engineering Assignment Help & IT Assignment Services at the best price. Hire Professional MBA/PhD Writer.



Cool Engineering Company has asked you and your team to develop an aggregate plan for January through June for its refrigerator production based on the following data:


Cost Data

Holding cost               RM8/ refrigerator /month

Subcontracting            RM80/ refrigerator

Regular-time labor      RM12/hour

Overtime labor            RM18/hour for hours above

8 hours/worker/day

Hiring cost                  RM40/ worker

Layoff cost                  RM80/ worker

Stock-out cost RM60/refrigerator


Capacity Data

Current workforce (December)          8 people

Labor hours/ refrigerator                    4 hours

Workdays/month                                20 days

Beginning inventory               250 refrigerators



Month Demand
January 400
February 500
March 550
April 700
May 800
June 700


What will each of the following strategies cost?


Plan I: Vary the workforce so that production meets the forecasted demand. Cool Engineering had eight employees in December.

Plan II: Vary overtime only and use a constant workforce of ten.

Plan III: Vary overtime and allowing stock-out and use a constant workforce of ten

Plan IV: Vary overtime and subcontracting

The objective is to choose the plan that has the lowest cost. Which plan is best and why?



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