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Management Instructions                                      &nbs

Management Instructions                                                                                         

            -          Ending inventory target for Period 5                                                             

            -          Backorder maximum if possible (after the first period)                                                                  

            32       Regular shift production per employee per period                                                               

                        The company's production strategy keeps the regular shift fully utilized                                                               

            100     Maximum overtime production per period if needed                                               Use Overtime before Subcontractors           

            35       Maximum subcontractor production per period if needed                                                               

            42       Initial inventory                                                                      

                                                                                               

                                                                                               

Aggregate Plan                                                                                              

                                    1          2          3          4          5          Totals

Forecast                                  670     550     550     550     500    

Employees                              15       15       16       16       16      

                                                                                               

Output                                                                                    

            Regular                                                                                  

            Overtime                                                                                

            Subcontractor                                                                        

Output - Forecast                                                                                          

                                                                                               

Inventory                                                                                            

            Beginning                                                                               

            Ending                                                                        

            Average                                                                                  

Backlog                                                                                              

                                                                                               

Costs                                                                                      

            Regular           $310.00                                                                     

            Overtime         $460.00                                                                     

            Subcontractor $560.00                                                                     

            Hire / Layoff    $150.00                                                                     

            Inventory         $100.00                                                                     

            Backlog           $18.00                                                                       

                                                                                               

Total Costs                                                                                         

Perform the necessary calculations for a Match (Chase) Production Strategy. Then enter selected values below.

What is the Output - Forecast quantity for Period 2?

What is the Regular Production Quantity for Period 3?

What is the Ending Inventory for Period 3?

What is the Beginning Inventory quantity for Period 5?

What is the Average Inventory quantity for Period 4?

What is the Backlog in Period 1?

What is the cost of Subcontractor Production in Period 2

What is the cost of Hire / Layoff in Period 3?

What is the Cost of Inventory in Period 5?

What is the Total Cost for this plan?

Business   Operations-Management   
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Answer #1

Solution :

What is the Output - Forecast quantity for Period 2? -6nos

What is the Regular Production Quantity for Period 3? 544nos

What is the Ending Inventory for Period 3? 0nos

What is the Beginning Inventory quantity for Period 5? 12nos

What is the Average Inventory quantity for Period 4? 6nos

What is the Backlog in Period 1? 0nos

What is the cost of Subcontractor Production in Period 2 0

What is the cost of Hire / Layoff in Period 3? 150

What is the Cost of Inventory in Period 5? 1100

What is the Total Cost for this plan? 791380

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