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Mba 690

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Running head: PRODUCTION PLAN
Semiannual Production Plan
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PRODUCTION PLAN 2
Semiannual Production Plan Coca-Cola Company
The production plan created will be a semiannual one (6 months), using notional demand
and inventory. Notional demand is the aggregate goods quantity that will be demanded if all the
markets are to be in equilibrium during the period the production plan is to be valid (Stevenson &
Sum, 2002). The labor hours consumed will also be estimated. In addition, there will be an estimate
of the number of worker requirements with consideration for the standard work week, current
inventory levels, receipts of new inventory during each month, and varying demand levels for each
month of production.
Given an estimated notional demand of 19500 units, the average notional demand should be
19,500/6 which is equal to 3250 per month (Dey, Cheffi, & Nunes, 2014). To produce these units
per month given a standard labor rate of 0.64, the workforce required will be:
3250*0.64 = 2080 units.
Units per hour given 160regular hours available = 2080/160 = 13 workers.
Opening Inventory: 2500 units
Current workforce: 14
Regular hours available: 160
Overtime hours available: 20
Standard of Labor: 0.64

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Running head: PRODUCTION PLAN Semiannual Production Plan Student’s Name Professor’s Name Course Title Date PRODUCTION PLAN 2 Semiannual Production Plan – Coca-Cola Company The production plan created will be a semiannual one (6 months), using notional demand and inventory. Notional demand is the aggregate goods quantity that will be demanded if all the markets are to be in equilibrium during the period the production plan is to be valid (Stevenson & Sum, 2002). The labor hours consumed will also be estimated. In addition, there will be an estimate of the number of worker requirements with consideration for the standard work week, current inventory levels, receipts of new inventory during each month, and varying demand levels for each month of production. Given an estimated notional demand of 19500 units, the average notional demand should be 19,500/6 which is equal to 3250 per month (Dey, Cheffi, & Nunes, 2014). To produce these units per month given a standard labor rate of 0.64, the workforce required will be: 3250*0.64 = 2080 units. Units per hour given 160regular hours available = 2080/160 = 13 workers. Opening Inventory: 2500 units Current workforce: 14 Regular hour ...
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