Question: Operations Management i) Develop an aggregate production plan formula using constant workforce, subcontract, and overtime to meet the demand. ii) Determine the total cost of

Operations Management

Operations Management i) Develop an aggregate

i) Develop an aggregate production plan formula using constant workforce, subcontract, and overtime to meet the demand.

ii) Determine the total cost of the plan.

a) A planner has developed an aggregate forecast for the demand (in cases) for the next six months as shown below: 1 4,000 2 4,800 3 5,600 4 7,200 5 6,400 6 5,000 Forecast The costs are shown below: Output Costs Regular wage: Overtime rate: Labour hours//unit: RM 5.50/hour RM 6/hour 80 minutes Overtime constraint: 500 units/months RM13/unit Subcontracting cost: Cost of hiring: Cost of layoff: RM700/worker RM 800/worker Average working days: 25 days/month (8 hours/day) 30 workers Current worker: Inventory holding cost: RM2.30/unit/month

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