Aggregate Planning and Master SchedulingPlanners of the company are about to prepare the aggregate plan that will cover6 months. Assuming that the company identified the following forecast for the next6 months:PeriodJanFebMarchAprilMayJuneForecast270000275000245000255000335000270000They now want to evaluate a plan that calls for a steady rate of regular output(250000 boxes/month). Mainly using inventory, regular time and overtime, andbackorders. They intend to start with zero inventory on hand in the first period.The maximum amount of overtime output per period is 30,000 box per month. Theregular production cost per box is 30 LE while the overtime cost per box is 35 LE.The holding cost is 5 LE per box per month and the backorder cost is 10 LE perbox per month.Then, prepare a master schedule to identify the available to promise amounts,knowing that the policy calls for a fixed order quantity of 350000 units, andcurrently there are 276000 units in inventory.53350007Week12275000 245000342550006Forecast8275000270000270000270000Orders27010027400025500025600030000040000276000277000

Find the Aggregate plan below: The required total cost is 51100000 LE.

Answered: Aggregate Planning and Master…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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How does the Wilson approach handle demand forecasting and inventory planning for new product launches?
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please help me with Question 3 thanks! Demand forecasts for 2021 are as follows: Month Demand Jan 140,000 Feb 78,900 Mar 85,800 Apr 89,100 May 123,600 Jun 136,350 Jul 120,450 Aug 106,950 Sep 121,950 Oct 135,750 Nov 87,000 Dec 93,300 Each worker can produce 900 products per month and is paid $1500 per month. Assume that at the end of last year, the company has 100 employees working on the production line. Hiring and layoff (firing) decisions are made at the beginning of each month, and associated costs are charged at that time. It costs the company $400 to hire and $800 to lay off a worker. The company incurs holding cost for the amount of ending inventory in each month, and incurs backorder cost at the end of each month for any unfilled orders. The company incurs $2 per month for holding one unit in inventory and $4 per unit backorder. 1 Prepare a level aggregate plan. Under this level aggregate plan, how…

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