Explore BrainMass
Share

Operations Management-Aggregate production planning

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable means that the number of workers needed for March will be held constant through May. However, government constraints put a maximum of 5,000 hours of overtime labor per month in April and May (zero overtime in February and March). If demand exceeds supply, then back orders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,000; March, 64,000; April, 100,000; May, 40,000. Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $50 per new worker; layoff, $70 per worker laid off; inventory holding, $10 per unit-month; straight-time labor, $10 per hour; overtime, $15 per hour; backorder, $20 per unit. Find the total cost of this plan.

© BrainMass Inc. brainmass.com October 16, 2018, 6:56 pm ad1c9bdddf
https://brainmass.com/business/project-management/operations-management-aggregate-production-planning-100067

Solution Summary

The solution finds the total cost of an operations plan.

$2.19
Similar Posting

Aggregate Planning Assumptions

Could you please help me with an assignment by answering the following question.
What are some assumptions made by planners when organizing a community or aggregate?
Thank you.

View Full Posting Details