QUESTION 5 (20 marks) Study the case below and answer all questions that follow.

You are an operations analyst at MPQ Limited, a manufacturer of a broad range of electric motorcycles. One of your main responsibilities is the development of an aggregate plan for the company.

a. Specify the basic capacity or demand options that you would rely on to produce an effective aggregate plan for MPQ Limited. (8 marks)

b. You have been tasked with the development of an aggregate plan for the year ended 31 December 2022. Accordingly, you have developed monthly forecasts for a range of motorcycles as presented in Table 5.1, below.

Table 5.1: The demand forecast developed for the year ended 31 December 2022.

MONTH

Jan-2022 Feb-2022 Mar-2022 Apr-2022 May-2022 Jun-2022 Jul-2022 Aug-2022 Sep-2022 Oct-2022 Nov-2022 Dec-2022

PRODUCTION DAYS

16

16

23

21

22

22

21

20

20

20

16

DEMAND FORECAST

150

150

250

250

400

500

600

750

450

250

150

150

DEMAND DEMAND PER FORECAST DAY

150 ? 150 ? 250 ? 250 ? 400 ? 500 ? 600 ? 750 ?

16

c. Compute and tabulate the daily demand for each month in the table below (round off to the

nearest whole number).

MONTH PRODUCTION DAYS

Jan-2022 16 Feb-2022 16 Mar-2022 23 Apr-2022 21 May-2022 22 Jun-2022 22 Jul-2022 21 Aug-2022 20

(6 marks)

Sep-2022 20450? Oct-2022 20250? Nov-2022 16150? Dec-2022 16150? Total ? ?

d. Assuming that MPQ Limited had adopted a level strategy for the year ended 31 December 2022, compute the average daily demand for the year (round off to the nearest whole number). ......................................................................................................... (3 marks)

e. Prepare a graph showing the monthly forecasts and average daily forecast (in units per day) for

MPQ Limited.

(3 marks)