Information: Demand Forecasts

Quarter $-$ I Beginning Inventory: Mowers $2600$; blowers $1400$

Output and Costs:

Production Rates:

Regular $500$ units per Full$-$Time employee per quarter $($of either unit$)$

Overtime up to $200$ units per Full$-$Time employee per quarter $($of either unit$)$

Temporary $400$ units per Temporary employee per quarter $($of either unit$)$

Subcontract Maximum subcontract output available is $5200$ units per quarter.

The V$.$P of Marketing is not all that happy with the large volume of backorders in your plan from

question $1$A$.$ She asks that you develop a plan that results in no backorders at any time during the

year. The V$.$P$.$ of manufacturing says that he will insist that any such plan specify level output each

quarter. The V$.$P$.$ of Finance states that you no longer need to have a Qtr$.$ IV ending inventory of

$2000$ units.

Using the original forecast data, beginning inventory, starting number of full time employees, etc.

from problem $1,$ develop a plan that will meet the requirements of all three V$.$P$.\text{'}$s$.$

AGGREGATE PLANNING WORKSHEET

$\backslash$table$[[$Period$,,$I,II$,$III,IV$,$Total$],[\backslash$table$[[$Forecast$]]],[$Output Total$],[\{$

$\backslash$table$[[$Inventory:$],[$Beginnning$]]\}],[],[$Ending$],[$Average$],[\{$

$\backslash$table$[[$Backorders:$],[$Plan for types of outputs$]]\}],[],[$FT hires$/$layoffs at start of quarter$],[],[$Regular output$/$person$/$qtr$,500,,,,,],[\backslash$table$[[$Overtime$],[$output$/$person$/$atr$]],200,,,,,],[\{$

$\backslash$table$[[$Temp hires$/$layoffs at start of quarter$],[$Temporary staff starting$]]\}],[],[$Temp output$/$person$/$qtr$,400,,,,,],[$Sub$-$contr $(5200/$atr max$)],[\backslash$table$[[$Check total output,Sam tape gray lines$]]],[$Costs$],[$Output costs for FT staff$],[$Regular $($$$/$unit$),5\mathrm{.}00,,,,,],[$Overtime $($$$/$unit$),7\mathrm{.}50,,,,,],[$Temp $($$$/$unit$),12\mathrm{.}00,,,,,],[$Sub$-$Contr $($$$/$unit$),10\mathrm{.}00,,,,,],[$Hiring costs $($$$/$person$),100,,,,,],[$Layoff costs $($$$/$FT person$),500,,,,,],[\backslash$table$[[$Inventory costs $\frac{\text{\$}}{?}$ qtr$-$avg$],[$inv$]],4\mathrm{.}00,,,,,],[$Backorder costs $\frac{\text{\$}}{q}$ tr$,8\mathrm{.}00,,,,,],[$Totals$,,,,,,]]$