Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 13, Problem 7P

Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data:

Chapter 13, Problem 7P, Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through , example  1

Chapter 13, Problem 7P, Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through , example  2

Chapter 13, Problem 7P, Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through , example  3

*No costs are incurred for unmet demand, but unmet demand (backorders) must be handled in the following period. If half or more of a worker is needed, round up.

**Note that there is no holding cost for June.

What will each of the two following strategies cost?

a) Vary the workforce so that production meets demand. Chua had eight workers on board in June.

b) Vary overtime only and use a constant workforce of eight.

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Explain what aggregate planning is and how it is useful.
JAYB, manager of a Fabrication company, has the following aggregate demand requirements and other data for the upcoming four quarters. Table 5: Forecast and cost information [Jadual 5: Maklumat Ramalan dan kos] Quarter [Suku] Demand [Permintaan] Previous quarter's output [Keluaran suku sebelumnya] 1,500 units 1 1,400 Beginning inventory [Inventori awal] 200 units 2 1,000 Hiring workers [Pengambilan pekerja] RM6 per unit 3 1,500 Laying off workers [Pembuangan pekerja] RM11 per unit 4 1,300 Unit cost [Kos unit] RM30 per unit   With the information given, JAYB wants you to calculate the total cost of using chase strategy by hiring and layoff workers.
Describe the different demand-based options used in aggregate planning and their implications for a company.
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