How to develop an aggregate plan for product line, Operation Management

Assignment Help:

DAT, Inc, company needs to develop an aggregate plan for its product line.

Relevant data are

Production time: 1 hour per unit

Average labor cost: $10/hour

Workweek: 5 days, 8 hours each day

Days per month: Assume 20 days per month

Beginning inventory: 500 units

Safety stock: one-half month

Carrying cost: $5 per unit per month

The forecast for the next year is:

Jan. Feb. Mar. Apr. May June July Aug Sep Oct Nov Dec

2500 3000 4000 3500 3500 3000 3000 4000 4000 4000 3000 3000

Management prefers to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the following month. Develop an aggregate plan that will meet the demand and other conditions of the problem. Do not try to find the optimum; just find a good solution and state the procedure you might use to test for a better solution. Make any necessary assumptions.

Related Discussions:- How to develop an aggregate plan for product line

Explain what will be the company''s return on equity, Midwest packaging's R...

Midwest packaging's ROE last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-asset ratio of 60%, which will result in annual intere

Case study...distribution problem at rollerblade, what is the problem that ...

what is the problem that you can understand by reading the above situation? how appropriate might a just in time inventory system be for product such as roller skates

Derive the demand functions of agent for good, 1. An agent has a utility fu...

1. An agent has a utility function over goods 1 and 2 of the form U = x c 1 x d 2 where c is your individual number and d is your minimum number. The agent's income is equal t

Explain what are the advantages and disadvantages of each, Would you rather...

Would you rather work for a supervisor high in need for achievement, affiliation, or power? Why? What are the advantages and disadvantages of each? Explain

Explain development of the germ theory of disease, In the 19th century hosp...

In the 19th century hospitals had notorious reputations questionable places to visit, risky places to stay. What advances changed all this? a.development of the germ theory of d

Explain typical complaints, Do results from the survey illustrate typical c...

Do results from the survey illustrate typical complaints about teams and specifically about team incentive rewards?

Explain implied warranties of merchantability, The UCC includes both implie...

The UCC includes both implied warranties of merchantability, warranties of fitness, and product liability. Some of these warranties protect the customer from defective products and

Explain pipeline transportation system for treated water, The network in fi...

The network in figure below shows the pipeline transportation system for treated water from the treatment plant (node 1) to a city water supply system (node 14). The arc capacities

Define elements of finagle a bagels operating system, Now, please answer th...

Now, please answer the question regarding operations management. How would you describe the elements of Finagle a Bagels operating system?

Order winners - operations strategy, Order Winners - Operations Strategy ...

Order Winners - Operations Strategy These are operational capabilities that directly contribute to winning business. They are generally cited as the reasons for the purchase o

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages