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Discuss on the various costs associated with aggregate planning..

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Concept explainers

Aggregate Planning Strategies

On the basis of the demand forecast, an organization can complete its business plans. When the business plans are complete, an organization can work backward from the completed total sales to the raw materials needed. Thus, annual and quarterly plans are divided into labor, raw material, working capital, and other demands for a medium-term period (6 months to 18 months). This process of evaluating moderate production requirements is known as aggregate planning.

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discuss.. what are the key inputs to aggregate planning?
22 es The table below provides Big Lake Bob's production possibilities schedule, which describes various combinations of fishing lures and duck decoys he can carve efficiently in a week. Big Lake Bob's Production Possibilities Schedule Fishing Lures Duck Decoys 100 80 6 60 12 40 18 20 0 24 30 a. Graph Big Lake Bob's production possibilities frontier using the information in the table above. Instructions: Use the tool provided "PPF" to plot the production possibilities frontier point by point (6 points total). Big Lake Bob's Production Possibilities Frontier S 36 30 24 Tools PPF
Forecast Data is given within problem. Cost Data is attached Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: LOADING... Click the icon to view the demand forecast. LOADING... Click the icon to view the cost data. John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: • Plan A: a strategy that hires and fires personnel as necessary to meet the forecast. • Plan B: a level strategy. • Plan C: a level strategy that produces 1,000 cases per quarter and meets the forecast demand with inventory and subcontracting. Part 2 a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Quarter Forecast Production Hire (Units) Layoff (Units)…
b) What are the components of service package! S. Prepare an aggregate plan for the following information of demand forecast as given in the table below. Period 1 Demand (units) 55 2 49 Regular Production Cost Overtime production Cost Regular Production capacity 3 60 4 57 5 45 : Rs 60 per unit : Rs 80 per unit : 50 units per period : Rs 5 per unit per period Inventory cost Overtime Production capacity: 10 Units per period : Rs 150 per unit : Unlimited : Nil 6 60 7 8 50 65 9 55 Subcontracting cost Subcontracting capacity Beginning Inventory Use regular production and supplement using inventory, overtime and subcontracting.
Explain how an aggregate production plan is made.
recommend future costing strategy for Brompton keeping the concern of the director in consideration
Dwayne Cole, owner of a F lorida firm that ma nufacturesdisplay cabinets, develops an 8-month aggregate plan.Demand and capacity (in units) a re fo recast as follows: The cost of producing each unit is $1,000 on regular time, $ 1,300 onovertime, and $1,800 on a subcontract. Inventory carrying cost is$200 per unit per month. There is no beginning or ending inventory )in stock, and no backorders are permitted from period to period. ~Let the production (workforce) vary by using regular timefirst, then overtime, and then subcontracting.a) Set up a production plan that minimizes cost by producingexactly what the demand is each month. This plan allows nobackorders or inventory. What is this plan's cost?b) Through better p lanning, regular-time production can be setat exactly the same amount, 275 units, per month. If demandcannot be met there is no cost assigned to shortages and theywill not be filled. Does this a lter…
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