Description
I would need this by Wednesday. There is a PDF file attached with the exercice,exercice
The memo should not exceed 3 pages including any displays. Students are encouraged to work on this assignment in teams not larger than 3 students. The write-up will be evaluated on both the analysis and the presentation and is due on Wednesday.
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Explanation & Answer
Attached.
Running head: AGGREGATE PLANNING AT IN-LINE INDUSTRIES
Aggregate Planning at In-Line Industries
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2
AGGREGATE PLANNING AT IN-LINE INDUSTRIES
Aggregate Planning at In-Line Industries
In-Line Industries (ILI) produces recreational in-line skates. Demand is seasonal, peaking in
the summer months. ILI has forecasted the following demand in pairs of skates for their most
popular line of skates for the next 8 months (March to October):
Level Strategy Plan
This plan consists of regular production of 220 units per month per employee.
Regular production= no. of employees (6) multiplied by 220 units per month
March
April
May
June
July
August
September
October
Total
Gross requirement
900
1500
2500
3000
1400
1000
600
400
11300
On-hand
500
920
740
0
0
1000
0
80
Net requirement
400
580
1760
3000
2280
1960
1240
320
11540
Regular production
1320
1320
1320
1320
1320
1320
1320
1320
10560
Overtime production
0
0
440
800
0
0
0
0
1240
Beginning inventory
500
920
740
0
0
0
0
80
Ending inventory
920
740
0
0
0
80
80
1000
2740
Backorder
0
0
0
880
960
640
0
0
2480
Regulation production cost= Regular production (1320) *$15
Overtime production cost= Overtime production multiplied by $20
Inventory holding cost= ending inventory multiplied by $2
Backorder cost= Backorder multiplied by $10
Type of costs
Regular production
19800
19800
19800
19800
19800
19800
19800
19800
19800
Overtime production
0
0
8800
16000
0
0
0
0
24800
Inventory holding cost
1840
1480
0
0
0
0
160
2000
5480
Backorder cost
0
0
0
8800
9600
6400
0
0
24800
3
AGGREGATE PLANNING AT IN-LINE INDUSTRIES
Total
213480
$213,480 is the total cost of level production plan.
Chase Strategy Plan
In chase strategy, workers are hired and fired to meet the dem...