The Operations Manager at WilCo Manufacturing Limited has asked you to engage in aggregate planning for...

 

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The Operations Manager at WilCo Manufacturing Limited has asked you to engage in aggregate planning for the upcoming eight quarters. Demand data for the upcoming eight quarters, along with other relevant data are presented below. Demand data for the upcoming eight quarters are provided below in Quarter Demand 1 1300 previous quarters output beginning inventory stockout cost inventory holding cost hiring workers laying off workers subcontracting cost unit cost 2 1000 3 1300 a. Plan A uses a chase strategy. Determine the cost of Plan A. SHOW YOUR WORKING. (8 marks) 4 1900 5 2000 6 1100 180 units O units $100 per unit $10 per unit at the end of quarter $20 per unit $40 per unit $200 per unit $100 per unit b. Plan B uses a pure level strategy. Determine the cost of Plan B. SHOW YOUR WORKING. (6 marks) c. Develop Plan C using sub-contracting for production over 1200 units. Determine the cost of Plan C. SHOW YOUR WORKING. (8 marks) d. Discuss the inventory management issues that WilCo will face with each of the three plans. (5 marks) e Recommend one of the plans to WilCo, providing a rationale. (2 marks) 7 1900 00 8 1200 The Operations Manager at WilCo Manufacturing Limited has asked you to engage in aggregate planning for the upcoming eight quarters. Demand data for the upcoming eight quarters, along with other relevant data are presented below. Demand data for the upcoming eight quarters are provided below in Quarter Demand 1 1300 previous quarters output beginning inventory stockout cost inventory holding cost hiring workers laying off workers subcontracting cost unit cost 2 1000 3 1300 a. Plan A uses a chase strategy. Determine the cost of Plan A. SHOW YOUR WORKING. (8 marks) 4 1900 5 2000 6 1100 180 units O units $100 per unit $10 per unit at the end of quarter $20 per unit $40 per unit $200 per unit $100 per unit b. Plan B uses a pure level strategy. Determine the cost of Plan B. SHOW YOUR WORKING. (6 marks) c. Develop Plan C using sub-contracting for production over 1200 units. Determine the cost of Plan C. SHOW YOUR WORKING. (8 marks) d. Discuss the inventory management issues that WilCo will face with each of the three plans. (5 marks) e Recommend one of the plans to WilCo, providing a rationale. (2 marks) 7 1900 00 8 1200

Answer rating: 100% (QA)

Question a The cost of Plan A is 1302000 Question b The cost of Plan B is 1249500 Question c The cost of Plan C is 1452000 Question d Discuss the inventory management issues that WilCo will face with ... View the full answer