Q. Jack is concerned about his company's corporate image and has decided against using hires and fires. Instead, he has asked you to consider a chase aggregate plan using the current workforce supplemented by either overtime or undertime to change capacity to match demand exactly. He has asked for the following information from you: (a) How many production hours would be required each period to produce the exact quantity needed? (b) How many regular-time production hours are available each period? (c) How many overtime production hours would be needed each period? (d) Show what would happen if this plan were implemented. (e) Calculate the costs associated with this plan. (f) Evaluate the plan in terms of cost, customer service, operations, and human resources. (g) Compare this chase strategy with level strategy and conclude which is better.

Q. Jack is concerned about his company's corporate image and has decided against using hires and fires. Instead, he has asked you to consider a chase aggregate plan using the current workforce supplemented by either overtime or undertime to change capacity to match demand exactly. He has asked for the following information from you: (a) How many production hours would be required each period to produce the exact quantity needed? (b) How many regular-time production hours are available each period? (c) How many overtime production hours would be needed each period? (d) Show what would happen if this plan were implemented. (e) Calculate the costs associated with this plan. (f) Evaluate the plan in terms of cost, customer service, operations, and human resources. (g) Compare this chase strategy with level strategy and conclude which is better.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

. If the opening backlog is 450 units, forecast demand is 700 units, and production is800 units, what will be the ending backlog?
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. There are 8 hours of production per day. Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Costs $8/disk drive/Month $80/disk drive Month $12/hour $18/hour (above 8 hours) $40/worker $80/worker 0 June 1 July 2 August 3 September 4 October 5 November 6 Doramhar What will each of the two following strategies cost? a) Vary the workforce so that production approximates demand. Chua had eight workers on board in June. (Enter all responses as whole numbers). Demand* Fill in the table below. (Enter all responses as whole numbers. In the hire/layoff column, use positive numbers for hires-plus signs omitted; negative numbers for layoffs.) 400 500 550 700 800 700 Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory 150 Other Data 20 days Beginning Inventory 150 disk…
Rough-Cut Capacity Planning 10. The demand for three products selected from a company's sales and operations plan are shown next, along with each product's standard hours. Assuming that the company has 27,500 labor hours available during the next planning horizon, determine whether the sales and operation plan is feasible. Product A B Units Demanded 25,000 14,500 11,500 Standard Hours (in hours/unit) 0.4 1.1 0.2
Q. Jack is concerned about his company’s corporate image and has decided against using hires and fires. Instead, he has asked you to consider a chase aggregate plan using the current workforce supplemented by either overtime or undertime to change capacity to match demand exactly. He has asked for the following information from you: (a) How many production hours would be required each period to produce the exact quantity needed? (b) How many regular-time production hours are available each period? (c) How many overtime production hours would be needed each period? (d) Show what would happen if this plan were implemented. (e) Calculate the costs associated with this plan. (f) Evaluate the plan in terms of cost, customer service, operations, and human resources. (g) Compare this chase strategy with level strategy and conclude which is better.
Rough-Cut Capacity Planning 10. The demand for three products selected from a company's sales and operations plan are shown next, along with each product's standard hours. Assuming that the company has 27,500 labor hours available during the next planning horizon, determine whether the sales and operation plan is feasible. Product B C Units Demanded 25,000 14,500 11,500 Standard Hours (in hours/unit) 0.4 1.1 0.2
Define "what-if analysis." How can a spreadsheet be used to plan capacity?
Memotec Taiwan, a company that manufactures mother-boards for laptops, has recently experienced a surge in itsoverseas orders. What type of considerations would yourecommend this company offers for it to estimate its capacityrequirements in the long run? Explain what the company has to take into account in order to decide whether to open a newplant or not
Prepare the capacity plan using the chase strategy, and compute the costs.
An university is planning to arrange an international conference with the capacity of 500 participants from all over the world. As the conference is going to be arranged after a long time (due to COVID-19), the authority is expecting 10% additional participants. How the concept of capacity cushion can be used here to make the arrangement a hassle free one? Explain in detail.
What exactly is capacity requirements planning (CRP)?
Manufacturing firms should use demand leading instead of demand trailing capacity strategy. Discuss.
True or False: "Capacity planning is concerned with determining the maximum output an organization can achieve within a given period."