The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information: Month Demand Forecast Above the available capacity through permanent workforce 1 1,000 2 1,000 3 2,000 4 3,000 5 4,000 6 1,000 Total: 12,000 Production per month = 20 units per worker Initial inventory = 500 units Desired ending inventory (at the end of month 6) = 0 units Cost: Hire cost = $500 per temporary worker Inventory = $10 per tractor per month Backorder = $150 per tractor per month The optimum aggregate plan is: Month 1 2 3 4 5 6 Total Forecast Demand above regular capacity 1,000 1,000 2,000 3,000 4,000 1,000 12,000 # of temporary workers required 50 50 100 150 200 50 Temp. Workers hired 25 25 50 75 0 0 Temp. workers laid off 0 0 0 0 0 125 Temp. Total workers 25 50 100 175 175 50 Output 500 1,000 2,000 3,500 3,500 1,000 11,500 0 What is the ending inventory in Month 2?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The planner at a company that makes garden tractors is about to prepare an aggregate production plan that will cover the next 6 months. She has collected the following information:
|
Month |
Demand |
|
1 |
1,000 |
|
2 |
1,000 |
|
3 |
2,000 |
|
4 |
3,000 |
|
5 |
4,000 |
|
6 |
1,000 |
|
Total: |
12,000 |
Production per month = 20 units per worker
Initial inventory = 500 units
Desired ending inventory (at the end of month 6) = 0 units
Cost:
Hire cost = $500 per temporary worker
Inventory = $10 per tractor per month
Backorder = $150 per tractor per month
The optimum aggregate plan is:
|
Month |
1 |
2 |
3 |
4 |
5 |
6 |
Total |
|
Forecast Demand above regular capacity |
1,000 |
1,000 |
2,000 |
3,000 |
4,000 |
1,000 |
12,000 |
|
# of temporary workers required |
50 |
50 |
100 |
150 |
200 |
50 |
|
|
Temp. Workers hired |
25 |
25 |
50 |
75 |
0 |
0 |
|
|
Temp. workers laid off |
0 |
0 |
0 |
0 |
0 |
125 |
|
|
Temp. Total workers |
25 |
50 |
100 |
175 |
175 |
50 |
|
|
Output |
500 |
1,000 |
2,000 |
3,500 |
3,500 |
1,000 |
11,500 |
|
0 |
- What is the ending inventory in Month 2?
- What is the total cost in Month 2?
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