Question: Develop a Level Aggregate Plan using inventories but not back orders . All demand must be met each period. Show formulas. 1 Calculate the aggregate
Develop a Level Aggregate Plan using inventories but not back orders. All demand must be met each period. Show formulas.
1 Calculate the aggregate production rate.
2 Calculate the appropriate workforce given the aggregate production rate.
3 Show what would happen if this plan were implemented.
4 Calculate the costs of this plan.
5 Evaluate the plan in terms of cost, customer service, operations, and human resources.
Cost Data
Regular-time labor cost per hour 12
Overtime labor cost per hour 18
Subcontracting cost per unit (labor only) 84
Holding cost per unit per period 12
Back-order cost per unit per period 21
Hiring cost per employee 600
Firing cost per employee 450
Capacity Data
Beginning workforce (employees) 210
Beginning inventory (units) 2000
Labor standard per unit (hours) 6
Regular time available per period (hours) 160
Overtime available per period (hours) 32
Subcontracting maximum per period (units) 1000
Subcontracting minimum per period (units) 500
Demand Data
Period 1 6000
Period 2 4800
Period 3 7840
Period 4 5200
Period 5 6560
Period 6 3600
Period 7 6000
Period 8 5296
Period 9 2112
Period 10 2112
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