A B I K L M 0 1 Chapter 11: Capacity Planning Assignment 2 of 3: How many workers do I need? LAWNKING Aggregate Planning 8 BASIC INPUT DATA DATE: 15-Dec 9 10 11 MONTHLY PROD. RATE (UNITS/WORKER/MONTH) : BEGINNING INVENTORY (UNITS) BEGINNING NUNBER OF WORKERS: HIRING COST PER NORKER: en we on LAYOFF COST PER WORKER: COST OF FULLY ASSEMBLED PRODUCT (AVE $) INVENTORY HOLDING COST (1 of value per year): INVENTORY SHORTAGE COST (COST/UNIT SHORT); REGULAR HOURLY WAGE RATX: OVERTIME HOURLY WAGE RATE: OPERATING TIME: (HOURS/WEEK) OPTIONS: 82 UNITS 1) Chase Strategy 1 1,225 UNITS 2) Level Strategy 80 WORKERS 3) Mixed Strategy $1,200 PER HIRE $1,500 PER PIRX $179 PER UNIT 286 ANNUALLY Notes on Chase Strategy $25.00 PER BACKORDER PER MONTH only make as many items as needed each month $15.30 PER WORKER - end the year with the same number in inventory as you started $23.00 PER WORKER - only full-time employees allowed (ie whole number of workers) 40 HOURS PER WEEX MONTES: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ANNUAL wwwwwwww wwwwww O 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Sales Forecast: Number of Workers Units Produced: Ending Inventory 0 1,225 1,225 1,225 1,225 1,225 1,225 1, 225 1,225 1,225 1,225 1,225 1,225 $0 $0 $0 SO $0 $0 $0 $0 SO SO $0 so 0 Reg. Labor Costs: Change in workers from last month: Hiring Cost: Layoft Cost: End-Iny. Hold. Cost: End-Inv. Short. Costi -80 $0 $120,000 $5, 116 $0 0 $0 0 $ 0 $5,116 $0 0 $0 $0 $5,116 $0 0 so $0 $5,116 $0 $ 0 $0 $0 $5,116 $0 0 SO $0 $5,116 $0 0 $0 $0 $ $5,116 $0 0 0 $0 $0 $5,116 $0 0 SO SO $5, 116 $0 $a $5,116 $0 0 SO $0 0 $5, 116 $0 0 SO $0 $5,116 $0 MONTHLY TOTAL COST: $125, 116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $181,397 TOTAL COST OF THIS STRATEGY D G I M N 0 1 LAWNKING Aggregate Planning BASIC INPUT DATA DATE: 15-Dec 5 ==================== 6 7 8 MONTHLY PROD. RATE (UNITS/WORKER/MONTH): BEGINNING INVENTORY (UNITS): BEGINNING NUMBER OF WORKERS: HIRING COST PER HORKER: LAYOFF COST PER WORKER: COST OF FULLY ASSEMBLED PRODUCT (AVE $) INVENTORY HOLDING COST ( of value per year) INVENTORY SHORTAGE COST (COST/UNIT SHORT) : REGULAR HOURLY WAGE RATE: OVERTIME HOURLY HAGE RATE: OPERATING TIME (HOURS/WEEK) $ $ $ OPTIONS: 82 UNITS 1) Chase Strategy 1,225 UNITS 2) Level Strategy 3) Mixed Strategy 80 WORKERS 1,200 PER HIRE 1,500 PER VIRE 179 PER UNIT 288 ANNUALLY Notes on Level Strategy 25.00 PER BACKORDER PER MONTH - workers must be the same EVERY month 15.30 PER WORKER - end the year with the same number in inventory as you started 23.00 PER WORKER - only full-time employees allowed (i.e. whole-number of workers) 40 HOURS PER WEEK $ $ $ MONTHS: Jan Feb Mar Apr May Jun Jul Aug Oct Nov Dec ANNUAL 0 0 0 O 0 0 O 0 0 o O 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Sales Forecast Number of Workers Units Produced: Ending Inventory: 0 1, 225 1, 225 - 1,225 1, 225 1, 225 1,225 1,225 1,225 1, 225 1,225 1,225 1, 225 $0 $0 $0 $0 SO $0 sa $0 $0 SO so $0 Reg. Labor Costs: Change in workers from last month Hiring Cost: Layoff Coat: End-Inv. Hold. Cost: End-Inv. Short. Cost: -80 so $120,000 $5, 116 $0 0 0 $0 SO $5,116 SO 0 $0 SO $5,116 SO D SO SO $5,116 SO D $0 SO $5,116 SO D $0 so $5,116 so D $0 $0 $5,116 $0 0 $0 $0 $5,116 $0 0 0 $0 $ 0 $5,116 $0 D 0 $0 so $5, 116 SO 0 SO SO $5,116 SO 0 $0 $0 $5,116 $0 MONTHLY TOTAL COST: $125, 116 $5, 116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5, 116 $5,116 $5,116 36 37 $181,397 TOTAL COST OF THIS STRATEGY B D E F K L N N 0 2 LAWNKING Aggregate Planning 3 4 BASIC INPUT DATA DATE: 15-Dec 5 6 B2 UNITS OPTIONS: 1) Chase Strategy 2) Level Strategy 3) Mixed Strategy 7 7 MONTHLY PROD. RATE (UNITS/HORKER/MONTH) BEGINNING INVENTORY (UNITS) 1 DEGINNING NUMBER OF WORKERS: BIRING COST PER WORKER: LAYOFF COST PER WORKER: COST OF FULLY ASSEMBLED PRODUCT (AVE $) 8 9 10 11 1225 UNITS 80 NORKERS $1,200 PER HIRE $1,500 PER FIRE $179 PER UNIT Note 1: You can see the solution method under DATA tab, SOLVER. It's all ready for you! : , 12 INVENTORY HOLDING COST (1 of value per year): 28% ANNUALLY 13 14 INVENTORY SHORTAGE COST (COST/UNIT SHORT) ! REGULAR HOURLY WAGE RATE Note 2: If you don't have SOLVER listed, add it under FILE, OPTIONS, MANAGE ADD-NS. GO. Check the SOLVER TOOLS. $25.00 PER BACKORDER PER MONTH $15.30 PER WORKER Note 3: The optimal solution with fractional workers - leave this as the optimal (e-g. considers part- time or temporary workers). If needed, compare results to that of only full-time workers by rounding $23.00 PER WORKER or add an Integer constraint. 40 HOURS PER WEEK OVERTIME HOURLY WAGE RATE: OPERATING TINE: [HOURS/WEEK) MONTHS: . Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ANNUAL 0 D 0 0 0 0 0 0 0 0 0 0 D Sales Forecast: Number of Workers Units Produced: Ending Inventory 0 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1, 225 1,225 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 SO $0 $0 $0 $0 $ $0 $0 SO SO SO $0 $ $0 0.0 Reg. Labor Costa: Change in workers from last month Hiring Cost: Layoff Cost: End-Inv. Hold. Cost: End-Inv. Short. Cost: -80.0 SO $120,000 $5,116 SO 0.0 $0 $0 $5, 116 $0 0.0 $0 $0 $5,116 $0 0.0 $0 $0 $5,116 $0 0.0 $0 $0 $5,116 $0 0.0 $0 $ $0 $5, 116 $0 0.0 $0 so $5,116 $0 $0 SO $5, 116 $0 0.0 SO SO $5,116 SO 0.0 $ $0 so $5,116 $0 0.0 $0 SO $5, 116 SO 0.0 $0 $0 $5, 116 $0 MONTHLY TOTAL COST. $125, 116 $5, 116 $5, 116 $5, 116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5, 116 36 37 $181,397 TOTAL COST OF THIS STRATEGY A D E F G H 1 2 LAWNKING Write in Pro's and Con's, as related to each topic below: Aggregate Planning 3 4 Inventory Policy Avoiding Stock-outs Excess Inventory Employment policy Workers Point-of-View Company Point-of-View 5 Method Cost of Method Chase $181,397 6 Level $181,397 7 Mixed $181,397 8 9 10 11 Which method would you recommend??? 12 Why???? 13 14 A B I K L M 0 1 Chapter 11: Capacity Planning Assignment 2 of 3: How many workers do I need? LAWNKING Aggregate Planning 8 BASIC INPUT DATA DATE: 15-Dec 9 10 11 MONTHLY PROD. RATE (UNITS/WORKER/MONTH) : BEGINNING INVENTORY (UNITS) BEGINNING NUNBER OF WORKERS: HIRING COST PER NORKER: en we on LAYOFF COST PER WORKER: COST OF FULLY ASSEMBLED PRODUCT (AVE $) INVENTORY HOLDING COST (1 of value per year): INVENTORY SHORTAGE COST (COST/UNIT SHORT); REGULAR HOURLY WAGE RATX: OVERTIME HOURLY WAGE RATE: OPERATING TIME: (HOURS/WEEK) OPTIONS: 82 UNITS 1) Chase Strategy 1 1,225 UNITS 2) Level Strategy 80 WORKERS 3) Mixed Strategy $1,200 PER HIRE $1,500 PER PIRX $179 PER UNIT 286 ANNUALLY Notes on Chase Strategy $25.00 PER BACKORDER PER MONTH only make as many items as needed each month $15.30 PER WORKER - end the year with the same number in inventory as you started $23.00 PER WORKER - only full-time employees allowed (ie whole number of workers) 40 HOURS PER WEEX MONTES: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ANNUAL wwwwwwww wwwwww O 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Sales Forecast: Number of Workers Units Produced: Ending Inventory 0 1,225 1,225 1,225 1,225 1,225 1,225 1, 225 1,225 1,225 1,225 1,225 1,225 $0 $0 $0 SO $0 $0 $0 $0 SO SO $0 so 0 Reg. Labor Costs: Change in workers from last month: Hiring Cost: Layoft Cost: End-Iny. Hold. Cost: End-Inv. Short. Costi -80 $0 $120,000 $5, 116 $0 0 $0 0 $ 0 $5,116 $0 0 $0 $0 $5,116 $0 0 so $0 $5,116 $0 $ 0 $0 $0 $5,116 $0 0 SO $0 $5,116 $0 0 $0 $0 $ $5,116 $0 0 0 $0 $0 $5,116 $0 0 SO SO $5, 116 $0 $a $5,116 $0 0 SO $0 0 $5, 116 $0 0 SO $0 $5,116 $0 MONTHLY TOTAL COST: $125, 116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $181,397 TOTAL COST OF THIS STRATEGY D G I M N 0 1 LAWNKING Aggregate Planning BASIC INPUT DATA DATE: 15-Dec 5 ==================== 6 7 8 MONTHLY PROD. RATE (UNITS/WORKER/MONTH): BEGINNING INVENTORY (UNITS): BEGINNING NUMBER OF WORKERS: HIRING COST PER HORKER: LAYOFF COST PER WORKER: COST OF FULLY ASSEMBLED PRODUCT (AVE $) INVENTORY HOLDING COST ( of value per year) INVENTORY SHORTAGE COST (COST/UNIT SHORT) : REGULAR HOURLY WAGE RATE: OVERTIME HOURLY HAGE RATE: OPERATING TIME (HOURS/WEEK) $ $ $ OPTIONS: 82 UNITS 1) Chase Strategy 1,225 UNITS 2) Level Strategy 3) Mixed Strategy 80 WORKERS 1,200 PER HIRE 1,500 PER VIRE 179 PER UNIT 288 ANNUALLY Notes on Level Strategy 25.00 PER BACKORDER PER MONTH - workers must be the same EVERY month 15.30 PER WORKER - end the year with the same number in inventory as you started 23.00 PER WORKER - only full-time employees allowed (i.e. whole-number of workers) 40 HOURS PER WEEK $ $ $ MONTHS: Jan Feb Mar Apr May Jun Jul Aug Oct Nov Dec ANNUAL 0 0 0 O 0 0 O 0 0 o O 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Sales Forecast Number of Workers Units Produced: Ending Inventory: 0 1, 225 1, 225 - 1,225 1, 225 1, 225 1,225 1,225 1,225 1, 225 1,225 1,225 1, 225 $0 $0 $0 $0 SO $0 sa $0 $0 SO so $0 Reg. Labor Costs: Change in workers from last month Hiring Cost: Layoff Coat: End-Inv. Hold. Cost: End-Inv. Short. Cost: -80 so $120,000 $5, 116 $0 0 0 $0 SO $5,116 SO 0 $0 SO $5,116 SO D SO SO $5,116 SO D $0 SO $5,116 SO D $0 so $5,116 so D $0 $0 $5,116 $0 0 $0 $0 $5,116 $0 0 0 $0 $ 0 $5,116 $0 D 0 $0 so $5, 116 SO 0 SO SO $5,116 SO 0 $0 $0 $5,116 $0 MONTHLY TOTAL COST: $125, 116 $5, 116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5, 116 $5,116 $5,116 36 37 $181,397 TOTAL COST OF THIS STRATEGY B D E F K L N N 0 2 LAWNKING Aggregate Planning 3 4 BASIC INPUT DATA DATE: 15-Dec 5 6 B2 UNITS OPTIONS: 1) Chase Strategy 2) Level Strategy 3) Mixed Strategy 7 7 MONTHLY PROD. RATE (UNITS/HORKER/MONTH) BEGINNING INVENTORY (UNITS) 1 DEGINNING NUMBER OF WORKERS: BIRING COST PER WORKER: LAYOFF COST PER WORKER: COST OF FULLY ASSEMBLED PRODUCT (AVE $) 8 9 10 11 1225 UNITS 80 NORKERS $1,200 PER HIRE $1,500 PER FIRE $179 PER UNIT Note 1: You can see the solution method under DATA tab, SOLVER. It's all ready for you! : , 12 INVENTORY HOLDING COST (1 of value per year): 28% ANNUALLY 13 14 INVENTORY SHORTAGE COST (COST/UNIT SHORT) ! REGULAR HOURLY WAGE RATE Note 2: If you don't have SOLVER listed, add it under FILE, OPTIONS, MANAGE ADD-NS. GO. Check the SOLVER TOOLS. $25.00 PER BACKORDER PER MONTH $15.30 PER WORKER Note 3: The optimal solution with fractional workers - leave this as the optimal (e-g. considers part- time or temporary workers). If needed, compare results to that of only full-time workers by rounding $23.00 PER WORKER or add an Integer constraint. 40 HOURS PER WEEK OVERTIME HOURLY WAGE RATE: OPERATING TINE: [HOURS/WEEK) MONTHS: . Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ANNUAL 0 D 0 0 0 0 0 0 0 0 0 0 D Sales Forecast: Number of Workers Units Produced: Ending Inventory 0 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1,225 1, 225 1,225 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 SO $0 $0 $0 $0 $ $0 $0 SO SO SO $0 $ $0 0.0 Reg. Labor Costa: Change in workers from last month Hiring Cost: Layoff Cost: End-Inv. Hold. Cost: End-Inv. Short. Cost: -80.0 SO $120,000 $5,116 SO 0.0 $0 $0 $5, 116 $0 0.0 $0 $0 $5,116 $0 0.0 $0 $0 $5,116 $0 0.0 $0 $0 $5,116 $0 0.0 $0 $ $0 $5, 116 $0 0.0 $0 so $5,116 $0 $0 SO $5, 116 $0 0.0 SO SO $5,116 SO 0.0 $ $0 so $5,116 $0 0.0 $0 SO $5, 116 SO 0.0 $0 $0 $5, 116 $0 MONTHLY TOTAL COST. $125, 116 $5, 116 $5, 116 $5, 116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5,116 $5, 116 36 37 $181,397 TOTAL COST OF THIS STRATEGY A D E F G H 1 2 LAWNKING Write in Pro's and Con's, as related to each topic below: Aggregate Planning 3 4 Inventory Policy Avoiding Stock-outs Excess Inventory Employment policy Workers Point-of-View Company Point-of-View 5 Method Cost of Method Chase $181,397 6 Level $181,397 7 Mixed $181,397 8 9 10 11 Which method would you recommend??? 12 Why???? 13 14