Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter 13, Problem 24P

a)

Summary Introduction

To determine: Aggregate planning for the 6-month period and its costs.

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

b)

Summary Introduction

To determine: Whether 4 CPAs are required for the firm and if any additional accountants are needed

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

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QUESTION TWO An aggregate plan is to be developed for the forecast of demand covering nine periods shown in Table below. Other relevant production and cost information is also provided. Find the cost associated with an aggregate plan that involves varying the size of the work force in order to have a production rate that matches demand. Note: Since this plan does not allow for any inventory build-up, a decision has been made to carry 10 units of safety stock, but no overtime or subcontract labour is used. Table showing Demand, production, and cost information Month Jan. Feb. Mar. April May June July Aug. Sept. Total Forecast 40 25 30 60 40 55 30 50 30 360 Production information Cost information Current number of workers Worker time/month Time to produce one unit 10 Hiring cost K600/employee 160 hrs Layoff cost K500/employee 40 hrs Regular time cost K30/hr Individual worker output Overtime cost K45/hr (160 hr/month/40 hr/unit) Subcontract labour K50/hr 4 units cost Safety stock of…
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Question-1- Read the scenario and answer the question below. Use separate heading to answer each point. The maximum limit of words-count in each part is 300 words: “When demand for future resources is expected to decrease, the company can start to plan ways to shed the capacity so that it will not be burdened with significant excess capacity in future quarters”. Identify the strategy of capacity to be used by the company. State the reason to choose the strategy. Explain the scenario in the context of Resource Planning. How this will be reflected in Annual Operations plan.
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