{"id":5614,"date":"2020-05-02T18:14:26","date_gmt":"2020-05-02T08:14:26","guid":{"rendered":"https:\/\/casestudyhelp.com\/sample-questions\/?p=5614"},"modified":"2020-05-02T18:14:26","modified_gmt":"2020-05-02T08:14:26","slug":"aggregate-production-planning-assessment-questions-answers","status":"publish","type":"post","link":"https:\/\/casestudyhelp.com\/sample-questions\/aggregate-production-planning-assessment-questions-answers\/","title":{"rendered":"Aggregate Production Planning Assessment Questions & Answers"},"content":{"rendered":"
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Looking forAggregate Production Planning Assessment Questions & Answers? Get Assignment Answers<\/strong><\/a> on Aggregate Production Plan Question. We Provide Operation Management Assignment Help<\/strong><\/a>,\u00a0Marketing Strategy and Planning Assignment<\/strong><\/a> &\u00a0Dissertation Writing\u00a0Help<\/strong><\/a> from Masters and PhD Expert at affordable price? Acquire HD Quality research work with 100% Plagiarism free content.<\/p>\n<\/blockquote>\n

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Aggregate Production Plan (20 marks)<\/strong><\/h2>\n

Question<\/strong><\/p>\n

In order to satisfy the production requirement, the company can vary its capacity by hiring or laying off workers and running overtime production. The following assumptions are made.<\/p>\n

    \n
  • Inventory and backorder costs are calculated using ending inventory\/backorder of each month.<\/li>\n
  • Hiring or layoff costs are incurred when the number of workers changes.<\/li>\n
  • The number of workers in each month should be an integer<\/strong>. Once scheduled, all workers will produce at their full potential each month.<\/li>\n
  • The ending inventory requirement of June stated in Cell \u201cB11\u201d of the sheet \u201cAggregate\u201d must be satisfied.<\/li>\n
  • Consider the following three different strategies.<\/li>\n<\/ul>\n

    (a) \u00a0A chase strategy by varying the number of workers. That is, use the minimum number of workers in each month to make the ending inventory of each month non-negative. No overtime production.<\/p>\n

    (b) \u00a0A level strategy to meet the overall production requirement. That is, use a constant number of workers for these 6 months; demand variations are absorbed by inventory and backorders. Hiring and layoff only happens at the beginning of January<\/strong>. No overtime production.<\/p>\n

    (c) \u00a0Stable workforce with overtime so that there is no backorder in all <\/strong>months. That is, set a constant number of workers for these 6 months; do overtime production if necessary; no backorder is allowed at the end of each month. <\/strong>Hiring and layoff only happens at the beginning of January.<\/p>\n

    Develop three plans using the above three strategies, respectively. Your plans should be cost- effective <\/em>among the plans that satisfy the requirements. (For example, using one thousand workers can satisfy some of the above requirements, but it is obviously not cost-effective, i.e., minimizing the cost.)<\/span><\/b><\/p>\n

     <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Initial number of workers<\/td>\n12<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Productivity<\/td>\n2<\/td>\nunits per worker hour<\/td>\n<\/td>\n<\/tr>\n
    Regular hours per month<\/td>\n200<\/td>\nhours<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Regular time salary<\/td>\n14<\/td>\n$ per hour<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Overtime salary<\/td>\n19<\/td>\n$ per hour<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Inventory holding cost<\/td>\n2<\/td>\n$ per unit per month<\/td>\n<\/td>\n<\/tr>\n
    Backorder cost<\/td>\n11<\/td>\n$ per unit per month<\/td>\n<\/td>\n<\/tr>\n
    Hiring workers<\/td>\n4500<\/td>\n$ per worker<\/td>\n<\/td>\n<\/tr>\n
    Laying off workers<\/td>\n5000<\/td>\n$ per worker<\/td>\n<\/td>\n<\/tr>\n
    Beginning Inventory of January<\/td>\n300<\/td>\nunits<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Required Ending Inventory of June<\/strong><\/td>\n700<\/strong><\/td>\nunits (at least these many units)<\/strong><\/td>\n<\/tr>\n
    \u00a0<\/strong><\/td>\n\u00a0<\/strong><\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Period<\/td>\n1<\/td>\n2<\/td>\n3<\/td>\n4<\/td>\n5<\/td>\n6<\/td>\nTotal<\/td>\n<\/tr>\n
    Demand<\/td>\n6900<\/td>\n8600<\/td>\n8600<\/td>\n8800<\/td>\n7500<\/td>\n7300<\/td>\n47700<\/td>\n<\/tr>\n
    Number of workers<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
     <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
    Beginning Inventory<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
    Regular production quantity<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
    Overtime production quantity<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
    Ending Inventory (use negative for backorder)<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
    Costs: <\/strong><\/td>\n<\/tr>\n
    Hiring cost<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Layoff cost<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Regular labour cost<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Overtime labour cost<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Inventory holding cost<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Backorder cost<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Total cost:<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

     <\/p>\n

    Reference ID:\u00a0#getanswers2001195<\/span><\/strong><\/p>\n

     <\/p>\n