Bioway, Inc., a manufacturer of medical supplies, uses ag- gregate planning to set labor and inventory levels for the year. While a variety of items are produced, a standard kit composed of basic supplies is used for planning purposes. Demand varies with seasonal illnesses and the quarterly or- dering policies of hospitals. The average worker at Bioway can produce 1000 kits a month at a cost of $9 per kit dur- ing regular production hours and $10 a kit during overtime production. Completed kits can also be purchased from outside suppliers at $12 each. Inventory carrying costs are $2 per kit per month. Overtime is limited to regular pro- duction, but subcontracting is unlimited. Due to high quality standards and extensive training, hiring and firing costs are $1500 per worker. Bioway currently employs 25 workers. Given the demand forecast below, develop a six-month ag- gregate production plan for Bioway using (a) chase demand and (b) a mixed strategy where the current workforce is kept for April through August, and supplemented with overtime and subcontracting as needed. Month DemandApril 60,000May 22,000June 15,000July 46,000August 80,000September 15,000
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.
Bioway, Inc., a manufacturer of medical supplies, uses ag- gregate planning to set labor and inventory levels for the year. While a variety of items are produced, a standard kit composed of basic supplies is used for planning purposes. Demand varies with seasonal illnesses and the quarterly or- dering policies of hospitals. The average worker at Bioway can produce 1000 kits a month at a cost of $9 per kit dur- ing regular production hours and $10 a kit during overtime production. Completed kits can also be purchased from outside suppliers at $12 each. Inventory carrying costs are $2 per kit per month. Overtime is limited to regular pro- duction, but subcontracting is unlimited. Due to high quality standards and extensive training, hiring and firing costs are $1500 per worker. Bioway currently employs 25 workers. Given the demand
Month Demand
April 60,000
May 22,000
June 15,000
July 46,000
August 80,000
September 15,000
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