Make-Believe-You is a company that produces "cosplay" costumes for those people who want to live like their favorite action heroes. Currently, out of its catalog of hundreds of costumes, Make-Believe-You has identified six costumes that are demanded on a regular basis (with the following traits) and that are made in the same system:

Make-Believe-You also has developed the following agreed-upon forecast for overall demand:

Management has decided that it would like to begin with 300 units at the end of December and end with 100 units on hand at the end of August.

a. Using these data, identify the monthly production levels using a chase strategy.

b. Using the data in your solution to the previous question, develop an aggregate plan using a constant workforce. (Hint: Convert the individual units into aggregate units using a summed weighted approach. For example, Iron Man contributes 5.8*.06 = 0.35 hours of demand for capacity, while Harley Quinn contributes 4.2*.32 = 1.34 hours of demand for capacity. Use the same approach for each item to determine the overall aggregate demand for capacity.)

c. Review your answers to the previous questions.

1. Under what conditions would you go with a chase strategy even though the costs might be lower with a level strategy?

2. What actions can you introduce to improve the quality of your aggregate planning?

 

Transcribed Image Text:

Model Harley Quinn Guardians of the Galaxy - Star Lord Star War- Storm trooper Lord of the Rings - Gandalf Batman - Dark Knight Iron Man - from Iron Man 3/Avengers # Hours 4.2 4.9 5.1 5.2 5.4 5.8 Price 285 345 395 425 525 725 % of Sales 32 21 17 14 10 6 Model Harley Quinn Guardians of the Galaxy - Star Lord Star War- Storm trooper Lord of the Rings - Gandalf Batman - Dark Knight Iron Man - from Iron Man 3/Avengers # Hours 4.2 4.9 5.1 5.2 5.4 5.8 Price 285 345 395 425 525 725 % of Sales 32 21 17 14 10 6

Answer rating: 100% (QA)

a December 300 units January 220 units February 280 units March 310 units April 145 units May 110 units June 225 units July 100 units ... View the full answer