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 23P
Summary Introduction
To think critically about: Suitable application of a chase and level strategy.
Introduction: Chase strategies are also referred to as the zero inventory plan; this focuses on a constant change each month, the workforce is adjusted regularly to match the demand. Level strategies are also referred to as the constant workforce plan, the capacity is uniform and instead the inventory is kept between the periods.
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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Is a chase or level strategy more appropriate for aggregate planning in an air conditioning manufacturing plant where demand is highly seasonal and the workforceis relatively skilled? Explain your answer.
A barbershop has been using a level workforce of barbers five days per week, Tuesday through Saturday. The barbers have considerable idle time on Tuesday through Friday, with certain peak periods during the lunch hours and after 4 p.m. each day. On Friday afternoon and all day Saturday, all the barbers are very busy, with customers waiting a substantial amount of time and some customers being turned away. What options should this barbershop consider for aggregate planning? How would you analyze these options? What data should be collected, and how should the options be compared?
You do not have to address all questions. Please select one or two to discuss.
Identify the variables decision makers have to work with in aggregate planning.
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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- Why is Aggregate Planning important in the service sector? Take the example of Airline industry to explain your answer.arrow_forwardA barbershop has been using a level workforce of barbers five days per week, Tuesday through Saturday. The barbers have considerable idle time on Tuesday through Friday, with certain peak periods during the lunch hours and after 4 p.m. each day. On Friday afternoon and all day Saturday, all the barbers are very busy, with customers waiting a substantial amount of time and some customers being turned away. What options should this barbershop consider for aggregate planning? Howwould you analyze these options? What data should be collected, and how should the options be compared?arrow_forwardA local machine shop employs 60 workers who have a variety of skills. The shopaccepts one-time orders and also maintains a number of regular clients. Discuss someof the difficulties with using the aggregate planning methodology in this context.arrow_forward
- How does aggregate planning in service differ fromaggregate planning in manufacturing?arrow_forwardDescribe the difference between aggregate planning in service and aggregate planning in manufacturing ?arrow_forwardWhat are the most common decision variables for aggregate planning in a manufacturing setting?In a service setting?arrow_forward
- WSS company makes weatherproof surveillance systems for parking lots. Demand estimates for the next four quarters are 25, 9, 13, and 17 units. Prepare an aggregate plan that uses inventory, regular time, and over time, and backorders. Subcontracting is not allowed. The regular time capacity is 15 units for quarters 1 and 2, 18 units for quarters 3 and 4. Overtime capacity is 3 units per quarter. The regular time cost is $2000 per unit, while the overtime cost is $3000 per unit. Backorder costs $300 per unit per quarter; inventory holding costs $100 per unit per quarter. The beginning inventory is zero. How many total units will be produced in quarter 1 for delivery in quarter 1? How many units in total will be used to fill back orders over the four quarters? What is the cost to produce one unit in Quarter 4 using overtime to fill a back order in quarter one?arrow_forwardPlease help me obtain the answer of this question. Please provide me the solution/computation.arrow_forwardOQ17arrow_forward
- Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory *Note that there is no holding cost for June. 8 people 4 hours 20 days 150 disk drives* O disk drives Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive…arrow_forwardGive typing answer with explanation and conclusionarrow_forwardIn aggregate planning ,the option that tries to smooth the demand pattern, but do not impact supply or capacity is called demand option. true or falesarrow_forward
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