BI Aggregate Production Planning 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 Shipment Forecast 9,000 17,000 18,000 16,000 10,000 8,000 Shipment Foregi Aggregate Production Plan Aggregate Proc Output Plan Output Plan Shipments Shipments - Ending Inventory (BIO) Ending Invento Input Plan Input Plan N of Workers (BW-270) # of Workers (ta Hires Hires Layoffs Layoffs Costs: Total Cost Unit Cost Units Subtotal Straight Tin 800 /kr/mo Inventory 1 /unit/mo Hiring Cost 1,000 /kr Layoff Cost 500 /kr Total Cost Intermediate Calculation: Determining the minimum of workers required: Month 12 56 Cumulative Demand 9,000 26,000 44,000 60,000 70,000 78,000 Avg Demand/Month 9,000 13,000 14,567 15,000 14,000 13,000 Highest Avi 15,000 Wkrs Reg 300 (use this to develop the Aggregate Production Plan) ITEM DESCRIPTION/FORMULA Shipment Fore given Aggregate Proc = Nof workers output rate/worker/month Output Plan Shipments a smaller of total quantity available, demand forecast), where total quantity available = El of previous month + APP quantity Ending Invento = total quantity available - shipment Input Plan # of Workers (E a decision variable Hires W of workers of current month - # of workers of previous month, if # of workers increases Layoffs = # of workers of previous month - # of workers of current month, if # of workers decreases