BI= Aggregate Production Planning Ex Note: Highlighted information are given. 1. Develop an aggregate production plan using a constant workforce that minimizes total cost without shortage. 2. Calculate the total cost. Requirements: Beginning Conditions: 1. No shortage allowed. O units 2. Use the level strategy. Beg #Wkrs 270 workers 3. Decision variable: # of Workers Output Rate 50 units/wkr 4. No hire or layoff during the planning period. Aggregate Production Plan Month Jan Feb Mar April May June Total ITEM DESCRIPTION/FORMULA Shipment Forecast 9,000 17,000 18,000 16,000 10,000 8,000 Shipment Fore given Aggregate Production Plan Aggregate Proc = #of workers * output rate/worker/month Output Plan Output Plan Shipments Shipments = smaller of {total quantity available, demand forecast}, where total quantity available = El of previous month + APP quantity Ending Inventory (BI=0) Ending Invento = total quantity available - shipment Input Plan Input Plan # of Workers (BW=270) # of Workers (E a decision variable Hires Hires = # of workers of current month - # of workers of previous month, if # of workers increases Layoffs Layoffs = # of workers of previous month - # of workers of current month, if # of workers decreases Costs: Total Cost Unit Cost Units Subtotal Straight Tin 800 / wkr/mo Inventory 1 /unit/mo Hiring Cost 1,000 /wkr Layoff Cost 500 /wkr Total Cost Intermediate Calculation: Determining the minimum # of workers required: Month 2 3 4 5 Cumulative Demand 9,000 26,000 44,000 60,000 70,000 78,000 Avg Demand/Month 9,000 13,000 14,667 15,000 14,000 13,000 Highest Ave 15,000 # Wkrs Req 300 (use this to develop the Aggregate Production Plan)