Consider the following Aggregate Planning problem.

a. What is the production rate per worker per day?

b. What is the production rate per worker per Month?

c. What is the wage rate per worker per Month?

d. What is the cost of production per unit produced using overtime?

e. For the given data, develop a complete ?Chase? plan for the six Months and the corresponding cost for this problem. (Roundup number of workers needed each Month)

f. For a level plan, what is the net total required production for the six Months?

g. What is the required production rate per Month? (round to 2 decimal places)

h. How many workers will be needed for this production rate found in (g) above? ? (round to 2 decimal places)

i. Develop a complete ?Level? plan for the six Months and the corresponding cost for this problem.

Transcribed Image Text:

Cost data Wage/hour OT pay rate Subcontracting rate/unit Carrying cost/unit/Month Hiring cost/unit Firing cost/unit Other data Std. hours Hours/day OT Limit 200 8 20% $15.00 $22.50 $60.00 $5.00 $250.00 $300.00 Demand forecast Month 1 2 3 4 56 6 Demand 4800 5000 6000 5800 5700 5500 Initial condition Production rate/day Current inventory Safety stock Days/month 220 200 50 2222220 24

Answer rating: 100% (QA)

a Production rate per worker 8 2 4 b Production rate per worker per month 4 20 View the full answer