Cook Door's Aggregate Planning Cook Door's management asked you as a Production and Operations Manager to...

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Cook Door's Aggregate Planning Cook Door's management asked you as a Production and Operations Manager to develop an aggregate plan given the forecast for the demand of raw material in tons shown below for the next 8 months. The Production and Operations plant you have recommended them in in phase 1 -Obour, October or 10th of Ramadan- has a normal capacity of 160 tons per month and overtime capacity for 5 tons. The normal output has a cost of L.E. 7,000 per ton; the overtime has a cost of L.E. 10,000 per ton; and the subcontracting has a cost of L.E.10,000 per ton. On the other hand, the beginning inventory is zero tons, the inventory carrying cost is L.E. 300 per ton of average inventory, and the backlog cost is L.E. 500 per ton. Months Jan Feb March April May June July Aug. Total Forecast 300 330 340 300 310 310 340 330 2,560 As an operations manager for Cook Door, you are required to: a. Formulate an aggregate plan that allows level production, uses inventory to absorb fluctuations and allows backlogs. (3 Marks) b. Formulate an alternative chase plan that matches the output with the forecasted demand, while using first overtime (with a maximum of 5 units), then subcontracting, to satisfy the excess in the demand (if it exceeds 320 units). (3 Marks) c. As a decision maker, evaluate the total cost of each plan; and hence decide which plan is better for Cook Door. (1 Marks) Cook Door's Aggregate Planning Cook Door's management asked you as a Production and Operations Manager to develop an aggregate plan given the forecast for the demand of raw material in tons shown below for the next 8 months. The Production and Operations plant you have recommended them in in phase 1 -Obour, October or 10th of Ramadan- has a normal capacity of 160 tons per month and overtime capacity for 5 tons. The normal output has a cost of L.E. 7,000 per ton; the overtime has a cost of L.E. 10,000 per ton; and the subcontracting has a cost of L.E.10,000 per ton. On the other hand, the beginning inventory is zero tons, the inventory carrying cost is L.E. 300 per ton of average inventory, and the backlog cost is L.E. 500 per ton. Months Jan Feb March April May June July Aug. Total Forecast 300 330 340 300 310 310 340 330 2,560 As an operations manager for Cook Door, you are required to: a. Formulate an aggregate plan that allows level production, uses inventory to absorb fluctuations and allows backlogs. (3 Marks) b. Formulate an alternative chase plan that matches the output with the forecasted demand, while using first overtime (with a maximum of 5 units), then subcontracting, to satisfy the excess in the demand (if it exceeds 320 units). (3 Marks) c. As a decision maker, evaluate the total cost of each plan; and hence decide which plan is better for Cook Door. (1 Marks)