Scribd Logo
Upload

Welcome to Scribd!

  • 26 views

    Production Plan 3: Constant Low Workforce Subcontract

    Uploaded by

    ヅウィ プトリ
    This document provides information needed for aggregate production planning over a 6 month period, including beginning inventory, demand forecasts, safety stock calculations, production requirements, and the costs associated with 4 different production plans. Plan 1 varies the workforce each month to meet exact production requirements, while Plan 3 keeps a constant low workforce and subcontracts any excess demand. Plan 1 results in total costs of $252,121 compared to $175,862 for Plan 3 due to lower hiring, layoff and overtime costs when subcontracting is used.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Production Plan 3: Constant Low Workforce Subcontract

    Uploaded by

    ヅウィ プトリ
    26 views1 page
    This document provides information needed for aggregate production planning over a 6 month period, including beginning inventory, demand forecasts, safety stock calculations, production requirements, and the costs associated with 4 different production plans. Plan 1 varies the workforce each month to meet exact production requirements, while Plan 3 keeps a constant low workforce and subcontracts any excess demand. Plan 1 results in total costs of $252,121 compared to $175,862 for Plan 3 due to lower hiring, layoff and overtime costs when subcontracting is used.

    Original Description:

    Original Title

    Latihan SOP 1

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides information needed for aggregate production planning over a 6 month period, including beginning inventory, demand forecasts, safety stock calculations, production requirements, and the costs associated with 4 different production plans. Plan 1 varies the workforce each month to meet exact production requirements, while Plan 3 keeps a constant low workforce and subcontracts any excess demand. Plan 1 results in total costs of $252,121 compared to $175,862 for Plan 3 due to lower hiring, layoff and overtime costs when subcontracting is used.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    26 views1 page

    Production Plan 3: Constant Low Workforce Subcontract

    Uploaded by

    ヅウィ プトリ
    This document provides information needed for aggregate production planning over a 6 month period, including beginning inventory, demand forecasts, safety stock calculations, production requirements, and the costs associated with 4 different production plans. Plan 1 varies the workforce each month to meet exact production requirements, while Plan 3 keeps a constant low workforce and subcontracts any excess demand. Plan 1 results in total costs of $252,121 compared to $175,862 for Plan 3 due to lower hiring, layoff and overtime costs when subcontracting is used.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    Beginning Inventory

    Demand Forecast
    Number of Working Days by Month

    January
    550
    2000
    25

    Costs
    Materials
    Inventory holding cost
    Marginal cost of stockout
    Marginal cost of subcontracting
    Hiring and training cost
    Layoff cost
    Labor hours required per unit
    Straight-line cost (first eight hours each day)
    Overtime cost (time and a half)

    $200.00
    $3.00
    $5.00
    $10.00
    $100.00
    $150.00
    4.0
    $6.00
    $9.00

    February

    March

    April

    May

    June

    Totals

    1000
    20

    1800
    24

    2200
    24

    1500
    25

    1700
    23

    10200
    141

    April
    450
    2,200
    550
    2,300
    550

    May
    550
    1,500
    375
    1,325
    375

    June
    375
    1,700
    425
    1,750
    425

    May
    1,325
    5,300
    25
    200
    27

    June
    1,750
    7,000
    23
    184
    38
    12
    $1,154

    $4,071

    $42,000
    Total Cost

    $6,250
    $241,800
    $252,121

    $ per unit
    $ per unit per month
    $ per unit per month
    $ per unit
    $ per worker
    $ per worker
    $ per unit
    $ per hour
    $ per hour

    Aggregate Production Planning Requirements


    Beginning Inventory
    Demand Forecast
    Safety Stock (.25 x Demand Forecast)
    Production Requirement
    Ending Inventory

    January
    550
    2,000
    500
    1,950
    500

    February
    500
    1,000
    250
    750
    250

    March
    250
    1,800
    450
    2,000
    450

    10,075

    Costs of Four Production Plans


    Production Plan 1: Exact Production; Vary Workforce
    January February
    March
    April
    1,950
    750
    2,000
    2,300
    Production Requirement
    7,800
    3,000
    8,000
    9,200
    Production Hours Required
    25
    20
    24
    24
    Working Days per Month
    200
    160
    192
    192
    Hours per Month per Worker
    39
    19
    42
    48
    Workers Required
    23
    6
    New Workers Hired
    $2,292
    $625
    Hiring Cost
    20
    Workers Laid Off
    $3,038
    Layoff Cost (Workers Laid Off x $250)
    $46,800
    $18,000
    $48,000
    $55,200
    Straight Time Cost

    21
    $3,213
    $31,800

    Total

    Production Plan 3: Constant Low Workforce; Subcontract


    Production Requirement
    Working Day per Month
    Production Hours Available (Working Day x 8
    Hrs./Day x jumlah Workers)*
    Actual Production (Production Hours Available/4
    hr.per Unit)
    Units Subcontracted (Production Requirement Actual Production)
    Subcontracting Cost (Units Subcontracted x
    biaya subcontract)
    Straight Time Cost

    January February
    1,950
    750
    25
    20

    May
    1,325
    25

    June
    1,750
    23

    Total

    3,040

    3,648

    3,648

    3,800

    3,496

    950

    760

    912

    912

    950

    874

    1,000

    -10

    1,088

    1,388

    375

    876

    $10,000

    $0

    $10,880

    $13,880

    $3,750

    $8,760

    $47,270

    $22,800

    $18,240

    $21,888

    $21,888

    $22,800

    $20,976
    Total Cost

    $128,592
    $175,862

    Plan 1
    $4,071
    $6,250
    $0
    $0
    $0
    $0
    $241,800
    $252,121

    Plan 3
    $0
    $0
    $0
    $0
    $47,270
    $0
    $128,592
    $175,862

    Comparison of Two Plans


    Cost

    April
    2,300
    24

    3,800

    *Minimum production requirement.

    Hiring
    Layoff
    Excess inventory
    Shortage
    Subconstract
    Overtime
    Straight time

    March
    2,000
    24

    Month
    January
    February

    Worker
    39
    18.75

    March

    41.66667

    April

    47.91667

    May
    June

    26.5
    38.04348

    You might also like