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Berlin Becker, personnel No. 1002, is a Sales representative in Office 1100, Group 300 of Sales Organization No. 1200. He receives orders for the Pump UDP-500, the main product of the Hamburg Plant (No. 1000) of the IDES. After compiling all the orders, he came up with the following aggregate requirements for the next six quarters. Quarter: 1 2 3 4 5 Demand: 1800 5000 8000 6000 2500 Producing one unit costs $30 on regular time of labor hour and $40 on overtime. The current level of inventory is 400 units. Holding one unit in inventory per year costs $5 charged on the average inventory. Shortage cost is estimated as $50 per unit per quarter. Each quarter has 450 hours. The firm has 22 workers now. Each worker can produce 120 units in regular time per quarter. Hiring one worker costs $1500 and laying off costs $2500. Overtime is restricted to 15% of the regular workforce. (Clearly state any assumption you made) 1. Find the aggregate production and workforce planning using Chase, Level and mixed strategy. Which method will provide minimum cost? 2. Develop a Linear Programming (LP) formulation for the aggregate production plan and workforce plan. 3. Solve your formulation. 4. Write a report detailing your production and workforce schedules as obtained from the LP solution. 5. Discuss about any other alternative approaches for this aggregate planning and workforce planning.
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