A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products....
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A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part a. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Month 1 January 2 February 3 March 4 April 5 May 6 June Table 1 Production Days 22 18 21 21 22 20 Demand Forecast 900 700 800 1,200 1,500 1,100 Avg Dem Per Prod. Day Other data Inventory carrying cost $5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $5 per hour ($40 per day) Overtime pay Rate $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) $600 per unit A Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the 6-month period January to June are presented in the table below. There are 8 hours of production per day. This exercise only contains part a. a) The firm would like to begin development of an aggregate plan. For this plan, plan 5, the firm wishes to maintain a constant workforce of 6, using subcontracting to meet remaining demand. Evaluate this plan. To determine whether this plan is desirable, first calculate demand per day for each month (enter your responses rounded to the nearest whole number). Month 1 January 2 February 3 March 4 April 5 May 6 June Table 1 Production Days 22 18 21 21 22 20 Demand Forecast 900 700 800 1,200 1,500 1,100 Avg Dem Per Prod. Day Other data Inventory carrying cost $5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $5 per hour ($40 per day) Overtime pay Rate $7 per hour (above 8 hrs per day) 1.6 hrs per unit $300 per unit Labor-hours per unit Cost of increasing daily production rate (hiring & training) Cost of decreasing daily production rate (layoffs) $600 per unit
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