1. Consider the following Aggregate Planning problem. (Please show work)

Cost Data:

Wage/hour= $15; OT pay rate= $22.50; Subcontracting rate/unit= $60.00; Carrying cost= $5.00; Hiring cost/worker= $250.00; Firing cost/worker= $300.00

Other Data

Std. hours= 2; Hours/day= 8; Days/month= 20; OT limit= 20%

Demand Forecast Month Demand 1 4800 2 5000 3 6000 4 5800 5 5700 6 5500

Initial Condition

Workers on roll= 25; Current inventory= 200; Safety stock= 50

a. What is the production rate per worker per day?

b. What is the production rate per worker per month?

c. What is the wage rate per worker per month?

d. What is the cost of production per unit produced using overtime?

e. For the given data, develop a complete “Chase” plan for the six months and the corresponding cost for this problem. (Roundup numbers of workers needed each month)

f. For a level plan, what is the net total required production for the six months?

g. What is the required production rate per month? (Round to 2 decimal places)

h. How many workers will be needed for this production rate found in (g) above? (Round to 2 decimal places)

i. Develop a complete “Level” plan for the six months and the corresponding cost for this problem.

 

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1. Consider the following Aggregate Planning problem. (Please show work) Cost Data: Wage/hour= $15; was first posted on July 4, 2020 at 12:36 pm.
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