Question: i also don't understand, just try to solve it using all the data which is provided in Question. BS OPERATIONS MANAGEMENT Fall 2021 ) Aggregate

i also don't understand, just try to solve it using all the data which is provided in Question.
BS OPERATIONS MANAGEMENT Fall 2021 ) Aggregate Planning at Shah Kam Shah Kam Inc is a parts manufacturer situated in the Sundar Industrial Estate Lahore. They supply metal parts to some of the leading manufacturers of electronic appliances in the country. However, their working has not been very smooth in the recent times. During past years they have faced troubles in deciding the order quantities for the raw materials required to fabricate the parts. This resulted in situations where production had to stop due to unavailability of parts at sometimes and at other times heavy costs were incurred with the third party warehouse for storing excessive materials. In some of these situations the delivery to their customers was delayed due production stoppages resulting in loss of goodwill and in some cases financial penalties due to non-fulfillment of contractual obligations. The top management is resolute to solve these problems this year. Due to your knowledge in aggregate planning process you have been hired as the planning manager in the organization to fix these problems. Following data are available for the planning purposes. Quarter Demand 1500 units 1 2 1400 1300 1600 1500 3 4 Previous quarter's output Beginning inventory Overtime Inventory holding cost Hiring workers Firing workers Subcontracting cost Unit cost 100 units Rs 30 extra per unit Rs 10 per unit/quarter Rs 40 per unit Rs 100 per unit Rs 80 per unit Rs 30 per unit Various strategies for planning are under consideration. One of the strategies you are giving serious consideration is to vary the workforce level to execute a strategy that produces the quantity demanded in the current quarter (i.e. the level strategy). The previous quarter production was 1500 units. If you decide to implement this strategy for planning, evaluate its cost to the company. BS OPERATIONS MANAGEMENT Fall 2021 ) Aggregate Planning at Shah Kam Shah Kam Inc is a parts manufacturer situated in the Sundar Industrial Estate Lahore. They supply metal parts to some of the leading manufacturers of electronic appliances in the country. However, their working has not been very smooth in the recent times. During past years they have faced troubles in deciding the order quantities for the raw materials required to fabricate the parts. This resulted in situations where production had to stop due to unavailability of parts at sometimes and at other times heavy costs were incurred with the third party warehouse for storing excessive materials. In some of these situations the delivery to their customers was delayed due production stoppages resulting in loss of goodwill and in some cases financial penalties due to non-fulfillment of contractual obligations. The top management is resolute to solve these problems this year. Due to your knowledge in aggregate planning process you have been hired as the planning manager in the organization to fix these problems. Following data are available for the planning purposes. Quarter Demand 1500 units 1 2 1400 1300 1600 1500 3 4 Previous quarter's output Beginning inventory Overtime Inventory holding cost Hiring workers Firing workers Subcontracting cost Unit cost 100 units Rs 30 extra per unit Rs 10 per unit/quarter Rs 40 per unit Rs 100 per unit Rs 80 per unit Rs 30 per unit Various strategies for planning are under consideration. One of the strategies you are giving serious consideration is to vary the workforce level to execute a strategy that produces the quantity demanded in the current quarter (i.e. the level strategy). The previous quarter production was 1500 units. If you decide to implement this strategy for planning, evaluate its cost to the companyStep by Step Solution
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