Aggregate Planning Assignment
1. In general, under what conditions might a firm favor a level production plan over a chase plan? A chase production plan over a level plan?
2. Why is it important to update a sales and operations plan on a regular basis, using a rolling time horizon approach?
3. What is the major difference between aggregate planning in manufacturing and aggregate planning in services?
4. You have been given the following information about production of a product for ABC Company:
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Facts given
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Cost perunit:
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$ 1250
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OT cost per unit:
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$ 18.75
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Holding cost:
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$ 11100
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Lahorhrf unit
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8
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Labor h rs per emp per month
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150.00
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Plant capacity
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1,800
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Cost to hire train emp
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$ 801100
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Cost to fire emp
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$ 500110
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Beginning/ ending workforce
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90
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Beginningimrentory
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500
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Demand (in units)
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Period 1
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1,710
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Period 2
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2,160
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Period 3
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1,440
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Period 4
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1,200
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Period 5
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Z048
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Period 6
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2,400
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Period 7
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1,740
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Period 8
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1,500
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a. Develop a level production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.
b. Develop a chase production plan for ABC Company. NOTE: The beginning and ending inventory units should be 500 units.
c. If you had to recommend a plan, which would you choose? What are the advantages / disadvantages of this recommended plan?