Business Background: Question 1 - (10 Points) Company A makes two types of product, X and Y. What is the average percentage of good product for Product X? The following is the 6 months forecast demand for X and Y b. a. Determine total demand Determine total defectives Determine new values for each month based on percent defects eg (July will be 100+(100*0.05) = 105 Product X July September October Month Demand Product Y (Use these values for Question 2) August 110 November 100 December 100 100 120 140 Question 2 - (30 Points) - Continued from Question 2 The capacity information of Product X is listed below. Regular Capacity - 100 unit per month Month July August September October November December Demand 140 150 180 170 140 140 Company A uses P chart to track operation performance. The p chart of each products is shown below (p stands for the proportion of defects, this include both regular production and OT production). The defect product will be scrapped. Regular Cost - $1,250 per unit. OT Capacity - 20 unit per month OT Cost - $1,400 per unit P Chart for X Subcontract Capacity - 30 unit per month 0.0580 0.0560 Subcontract Cost - $1650 per unit 0.0540 0.0520 Holding Cost - $180 per unit per month Backlog - NOT allowed. 0.0500 0.0480 0.0460 0.0440 0.0420 With the above information, establish the Aggregate plan for the following three options. 1. Option 1, use regular, OT and subcontract to satisfy all the demand. 2. Option 2, use regular, OT and inventory to satisfy all the demand. 3. Option 3, use regular, OT, subcontractor and inventory to satisfy all the demand. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 PCenter UCLLCL Percent defective is = 5% Percent of good product is 95% Thus July will be 100+(100*0.05) = 105 P Chart for Y 0.0720 0.0670 0.0620 0.0570 0.0520 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 P Center UCL LCL Percent defective is = 6% Solve-Using-MS-EXCEL-Question- 2 RightClick-on-image-ViewImage-to/get/clearer/image