Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 3.6, Problem 29P
Summary Introduction
To think critically about: Defining disaggregation of aggregate plans.
Introduction: Aggregate planning allows organizations to plan ahead. Aggregate planning’s objective is to manage the positives of producing to meet the demand within close proximities whilst tackling interferences caused by changes in production levels and the change in workforce levels.
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Discuss how aggregate planning differs when a company doesn't provide a tangible product?
Identify the factors for which decision-makers must deal in aggregate planning.
Explain how aggregate planning is different when thecompany does not provide a tangible product.
Chapter 3 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 3.1 - Prob. 1PCh. 3.1 - Prob. 2PCh. 3.1 - Prob. 3PCh. 3.1 - Prob. 4PCh. 3.1 - Prob. 5PCh. 3.1 - Prob. 6PCh. 3.2 - Prob. 7PCh. 3.2 - Prob. 8PCh. 3.2 - Prob. 9PCh. 3.2 - Prob. 10P
Ch. 3.2 - Prob. 11PCh. 3.2 - Prob. 12PCh. 3.3 - Prob. 13PCh. 3.3 - Prob. 14PCh. 3.3 - Prob. 15PCh. 3.3 - Prob. 16PCh. 3.4 - Prob. 17PCh. 3.4 - Prob. 18PCh. 3.4 - Prob. 19PCh. 3.4 - Prob. 20PCh. 3.4 - Prob. 21PCh. 3.4 - Prob. 22PCh. 3.4 - Prob. 23PCh. 3.5 - Prob. 26PCh. 3.5 - Prob. 27PCh. 3.6 - Prob. 29PCh. 3.6 - Prob. 30PCh. 3 - Prob. 31APCh. 3 - Prob. 32APCh. 3 - Prob. 33APCh. 3 - Prob. 34APCh. 3 - Prob. 35APCh. 3 - Prob. 36AP
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- Explain why aggregate planning is different when a business does not produce a tangible goodarrow_forwardWhat considerations are essential in determining the planning horizon period for aggregate planning?arrow_forwardImplement a effective Aggregate planning process using Chase Strategy,level strategy & Mixed strategy. Find out which one is better & why statisticallyarrow_forward
- From a managerial standpoint, please describe the value of aggregate planning. Explainarrow_forwardDescribe in detail what are the aggregate planning goal's?arrow_forwardA. Planners for a company that makes several models of skateboards are about toprepare the aggregate plan that will cover six periods. They now want toevaluate a plan that calls for a steady rate of regular output, mainly usinginventory to absorb the uneven demand but allowing some backlog. Overtimeand subcontracting are not used because they want a steady output. They intendto start with zero inventory on hand in the first period. Prepare an aggregate planand determine its cost using the following information. Assume a level of outputrate of 300 units per period with regular time. Note that the planned endinginventory is zero. There are 15 workers, and each can produce 20 units perperiod. Period 1 2 3 4 5 6 TotalForecast 200 200 300 400 500 200 1800 Cost Information:Regular time = $2 per skateboardOvertime = $3 per skateboardSubcontract = $6 per skateboardInventory = $1 per skateboard per period on…arrow_forward
- Planners for a company that makes several models of skateboards are about toprepare the aggregate plan that will cover six periods. They now want toevaluate a plan that calls for a steady rate of regular output, mainly usinginventory to absorb the uneven demand but allowing some backlog. Overtimeand subcontracting are not used because they want a steady output. They intendto start with zero inventory on hand in the first period. Prepare an aggregate planand determine its cost using the following information. Assume a level of outputrate of 300 units per period with regular time. Note that the planned endinginventory is zero. There are 15 workers, and each can produce 20 units per Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1800 Cost Information:Regular time = $2 per skateboardOvertime = $3 per skateboardSubcontract = $6 per skateboardInventory = $1 per skateboard per period on average inventoryBack orders = $5 per skateboard per periodarrow_forwardIn what way does the time horizon chosen for an aggregate plan to determine whether it is the best plan for the firm?arrow_forwardExplain what aggregate planning is and how it is useful.arrow_forward
- Deb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. the four-quarter forecast. Quarter Forecast 1 1,400 2 1,100 3 1,700 4 1,300 aggregate plan. Costs Previous quarter's output 1,600 units Beginning inventory 0 units Stockout cost for backorders $55 per unit Inventory holding cost $11 per unit for every unit held at the end of the quarter Hiring workers $50 per unit Layoff workers $75 per unit Unit cost $35 per unit Overtime $20 extra per unit Subcontracting Not available Your job is to develop an aggregate plan for the next four quarters. Part 2 a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole…arrow_forwardSuppose XYZ Company has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Other Data 1 1300 Previous quarter’s output 1500 Units 2 1400 Beginning Inventory 200 units 3 1500 Stock out cost 50$ per unit 4 1300 Inventory holding cost 10 $ per unit Hiring Workers 4$ per unit Firing workers 8$ per unit Unit Cost 30$ per unit Overtime 40 $ per unit Question: Which of the following production plans is better: –Plan A—chase demand by hiring and firing –Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime?arrow_forwardwhich are costs relevant to the aggregate production plan and explain?arrow_forward
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