Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 3.4, Problem 17P
Summary Introduction
To think critically about: Constrains in aggregate planning.
Introduction: Aggregate planning allows organizations to plan ahead. Aggregate planning’s objective is to manage the positives of producing to meet their demand within close proximities whilst tackling interferences caused by changes in production levels and the change in workforce levels.
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Aggregate planners attempt to balance:
a.
demand and inventories
b.
capacity and costs
c.
capacity and demand
d.
demand and costs
A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 1000 units per month can be used. Backorders are allowed, and they are charged at the rate of $20 per unit per month. Inventory holding costs are $1 per unit per month in ending inventory. Determine the cost of this plan if regular time cost is $10 per unit and beginning inventory is zero. Overtime costs $16 per unit and subcontracting costs $20 per unit. In the 4th month, overtime is not possible. While outsourcing is not allowed in the 3rd month. Overtime capacity is 100 units and subcontracting capacity is 100 units per month.
Month Forecast
1 800
2 960
3 1120
4 1440
5…
A manager has prepared a forecast of expected aggregate demand for the next six months. Develop an aggregate plan to meet this demand given this additional information: A level production rate of 500 units per month can be used. Backorders are allowed, and they are charged at the rate of $20 per unit per month. Inventory holding costs are $1 per unit per month in ending inventory. Determine the cost of this plan if regular time cost is $10 per unit and beginning inventory is zero. Overtime costs $16 per unit and subcontracting costs $20 per unit. In the 4th month, overtime is not possible. While outsourcing is not possible in the 3rd month. Overtime capacity is 50 units and subcontracting capacity is 50 units.
Month Forecast
1 400
2 480
3 560
4 720
5…
Chapter 3 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 3.1 - Prob. 1PCh. 3.1 - Prob. 2PCh. 3.1 - Prob. 3PCh. 3.1 - Prob. 4PCh. 3.1 - Prob. 5PCh. 3.1 - Prob. 6PCh. 3.2 - Prob. 7PCh. 3.2 - Prob. 8PCh. 3.2 - Prob. 9PCh. 3.2 - Prob. 10P
Ch. 3.2 - Prob. 11PCh. 3.2 - Prob. 12PCh. 3.3 - Prob. 13PCh. 3.3 - Prob. 14PCh. 3.3 - Prob. 15PCh. 3.3 - Prob. 16PCh. 3.4 - Prob. 17PCh. 3.4 - Prob. 18PCh. 3.4 - Prob. 19PCh. 3.4 - Prob. 20PCh. 3.4 - Prob. 21PCh. 3.4 - Prob. 22PCh. 3.4 - Prob. 23PCh. 3.5 - Prob. 26PCh. 3.5 - Prob. 27PCh. 3.6 - Prob. 29PCh. 3.6 - Prob. 30PCh. 3 - Prob. 31APCh. 3 - Prob. 32APCh. 3 - Prob. 33APCh. 3 - Prob. 34APCh. 3 - Prob. 35APCh. 3 - Prob. 36AP
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