For the following monthly demand forecast develop an aggregate plan when a) 55 units per day is produced and unmet demand is backordered. b) 42 units per day is produced and overtime is used when needed. Month Demand Production Days 1 1175 20 2 1600 22 3 1300 21 4 900 21 5 900 19 6 1000 22 item cost Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 /hr ($80 per day) Overtime pay rate $17/hr (above 8 hrs/day) Labour-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Backorder $10 per unit
For the following monthly demand forecast develop an aggregate plan when a) 55 units per day is produced and unmet demand is backordered. b) 42 units per day is produced and overtime is used when needed. Month Demand Production Days 1 1175 20 2 1600 22 3 1300 21 4 900 21 5 900 19 6 1000 22 item cost Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $20 per unit Average pay rate $10 /hr ($80 per day) Overtime pay rate $17/hr (above 8 hrs/day) Labour-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Backorder $10 per unit
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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- For the following monthly demand
forecast develop an aggregate plan when
a) 55 units per day is produced and unmet demand is backordered.
b) 42 units per day is produced and overtime is used when needed.
|
Month |
Demand |
Production Days |
|
1 |
1175 |
20 |
|
2 |
1600 |
22 |
|
3 |
1300 |
21 |
|
4 |
900 |
21 |
|
5 |
900 |
19 |
|
6 |
1000 |
22 |
|
item |
cost |
|
Inventory carrying cost |
$ 5 per unit per month |
|
Subcontracting cost per unit |
$20 per unit |
|
Average pay rate |
$10 /hr ($80 per day) |
|
Overtime pay rate |
$17/hr (above 8 hrs/day) |
|
Labour-hours to produce a unit |
1.6 hours per unit |
|
Cost of increasing daily production rate (hiring and training) |
$300 per unit |
|
Cost of decreasing daily production rate (layoffs) |
$600 per unit |
|
Backorder |
$10 per unit |
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