Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Question
Chapter 3.4, Problem 18P
Summary Introduction
To think critically about: The reasons to deny aggregate planning into the strategy.
Introduction: Aggregate planning allows organizations to plan ahead. Aggregate planning’s objective is to manage the positives of producing to meet their demand within close proximities whilst tackling interferences caused by changes in production levels and the change in workforce levels.
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Students have asked these similar questions
A large manufacturer of household consumer goods is considering integrating an aggregate planning model into its manufacturing strategy. Two of the company vice presidents disagree strongly as to the value of the approach. What arguments might each of the vice presidents use to support his or her point of view?
7-3. Nowjuice, Inc., produces Shakewell fruit juice. A planner has developed an aggregate forecast
for demand (in cases) for the next eight months.
month Apr
forecast 4500
May
4400
Jun
6200
Jul
6400
Aug
5800
Sep
6600
Oct
7200
Nov
6900
Use the following information to develop aggregate plans.
Regular production cost: $10.00 per case
Regular production capacity: 5,000 cases
Overtime production cost: $16 per case
Subcontracting cost: $20 per case
Holding cost: $1 per case per month
Beginning inventory: 0
Develop an aggregate plan using each of the following guidelines and compute the total cost for
each plan. Which plan has the lowest total cost?
(a) Use level production of 5,000 case per month. Supplement using overtime as needed
(b) Use a combination of overtime (500 cases per month for the first five months), inventory, and
subcontracting (500 cases per month from September to November, if necessary) to handle
variations in demand. Note that suitable amounts of overtime for the last…
Aggregate planners attempt to balance:
a.
demand and inventories
b.
capacity and costs
c.
capacity and demand
d.
demand and costs
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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