A newly opened BackPack Company in Kitwe, produces a line of backpacks. The manager, Jill Bwalya, is interested in using a level aggregate plan. Inventories and back orders will be used to handle demand fluctuations. Given the following data below; Cost data Regular-time labour cost per hour K10.00 Overtime labour cost per hour K15.00 Subcontracting cost per unit (labour only) K84.00 Holding cost per unit per period K10.00 Back-order cost per unit per period K20.00 Hiring cost per employee K600.00 Firing cost per employee K450.00 Capacity data Beginning workforce 210 employees Beginning inventory 400 units Labour standard per unit 6 hours Regular time available per period 160 hours Overtime available per period 32 hours Subcontracting maximum per period 1000 units Subcontracting minimum per period 500 units Demand data Period 1 6000 units Period 2 4800 units Period 3 7840 units Period 4 5200 units Period 5 6560 units Period 6 3600 units She has asked you to develop such a plan. a) Calculate the aggregate production rate. b) Calculate the appropriate workforce given the aggregate production rate. c) Calculate the costs of this plan.
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.
A newly opened BackPack Company in Kitwe, produces a line of backpacks. The manager, Jill Bwalya,
is interested in using a level aggregate plan. Inventories and back orders will be used to handle
demand fluctuations. Given the following data below;
Cost data
Regular-time labour cost per hour K10.00
Overtime labour cost per hour K15.00
Subcontracting cost per unit (labour only) K84.00
Holding cost per unit per period K10.00
Back-order cost per unit per period K20.00
Hiring cost per employee K600.00
Firing cost per employee K450.00
Capacity data
Beginning workforce 210 employees
Beginning inventory 400 units
Labour standard per unit 6 hours
Regular time available per period 160 hours
Overtime available per period 32 hours
Subcontracting maximum per period 1000 units
Subcontracting minimum per period 500 units
Demand data
Period 1 6000 units
Period 2 4800 units
Period 3 7840 units
Period 4 5200 units
Period 5 6560 units
Period 6 3600 units
She has asked you to develop such a plan.
a) Calculate the aggregate production rate.
b) Calculate the appropriate workforce given the aggregate production rate.
c) Calculate the costs of this plan.
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