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85042230-M13-HEIZ5577-01-SE-C13 WF
85042230-M13-HEIZ5577-01-SE-C13 WF
C H A P T E R
Aggregate Planning
DISCUSSION QUESTIONS
1.Aggregate planning is concerned with the quantity and
timing of production for the intermediate future; typically
encompasses a time horizon of three to eighteen months.
2.Aggregate means combining the appropriate products and
resources into general, or overall, terms.
3.Strategic objectives: minimize cost over the planning
period, smooth fluctuations in work force, drive down inventory
levels for time-sensitive stock, and meet a high level of service
regardless of cost. Cost minimization is the most often treated
quantitatively and is generally the most important.
4.With a chase strategy production rates or work force levels
are
adjusted to match demand requirements over the planning horizon.
5.A pure strategy is one that varies only one factorfor
example, maintain a constant work force level or maintain a
constant inventory. Trade-offs are ignored.
6.Level scheduling is an aggregate plan in which daily capacities are uniform from month to month. The underlying philosophy
is that stable employment leads to better quality, less turnover,
less absenteeism, and more employee commitment.
7.Mixed strategy is a planning approach in which two or more
options, such as overtime, subcontracting, hiring and layoff, etc.,
are used. There are both inventory changes and work force and production rate changes over the planning horizon. Typically, mixed
strategies are better (result in lower costs) than pure strategies.
8.The advantage of varying the size of the workforce as required to adjust production capacity is that one has a fundamental
ability to change production capacity in relatively small and
precise increments. The disadvantages are that a ready supply of
skilled labor is not always available, newly hired personnel must
be trained, and firings or layoffs undermine the morale of all
employees and can lead to a widespread decrease in overall
productivity.
9.Mathematical models are not more widely used because
they tend to be relatively complex and are seldom understood by
those persons performing the aggregate planning activities.
10.Aggregate planning in services differs from aggregate
planning in manufacturing in the following ways:
Most services are perishable and cannot be inventoried.
It is virtually impossible to produce the service early in
anticipation of higher demand at a later time.
Demand for services is often difficult to predict. Demand
variations may be more severe and more frequent.
158
159
CHAPTER 13A G G R E G A T E P L A N N I N G
ETHICAL DILEMMA
1. From the airlines point of view, revenue (yield)
management is crucial. Moreover, many firms, including hotels, restaurants, and universities practice revenue
management. A good class discussion can be generated
by asking students to discuss how other organizations
practice yield management without all of the publicity
(often adverse publicity) that airlines receive.
Hotels have various approaches, from weekend
specials, to points, to computerized pricing to adjust
to daily volume changes.
Restaurants have coupons, early bird specials, and
special prices on slow nights. Huge portions of restaurant customers have some sort of discount. The authors
have seen one figure that as high as 30 percent of
restaurant customers use coupons (the figure varies
substantially depending on the type of restaurant
included.).
Universities have so many grants, scholarships, and
loans that in many universities most of the students have
some sort of deal; this is revenue management for the
university.
These yield management techniques are designed to
appeal to various market segments. And the pervasiveness of the techniques proves that it does work.
From the customers perspective there is often
resentment at sitting next to someone on the airplane
who has paid half as much for the same flight as you
paidor going to a restaurant and having the customer
who arrived 15 minutes earlier than you or who has a
coupon, pay half the price for the same meal. A sense of
fairness suggests that something is wrong and some
customers resent the difference.
2. Most customers have come to accept yield management
and take full advantage of the opportunities if affords.
The multiple pricing of yield management by definition
satisfies more customers (customers use the services)
and the firm utilizes resources more effectively.
3. Many customers do take exception to the variation in
pricingdifferent prices for the same service seem
inherently wrong to many people and management need
to be prepared for the irate customer.
4. Some customers will manipulate the system by booking
tickets on flights that have a stop over in a city they
travel to, but which has a higher fare than the destination
flight. They exit the plane at the stopover citysaving
money. For instance, if the flight from New York to
Chicago is less than the flight to the stopover citysay
Pittsburgh, a customer can book the flight to Chicago
but get off in Pittsburgh. You might ask students to
discuss the ethics of this manipulation.
And, of course, customers use the system by
finding the positions on the yield management curve
that works for them. Sometimes this means shopping
for tickets weeks in advance and taking the risk of a
change
CHAPTER 13A G G R E G A T E P L A N N I N G
END-OF-CHAPTER PROBLEMS
13.1
Production
Month
Days
Jan
Feb
Mar
Apr
May
Jun
July
Aug
Sep
Oct
Nov
Dec
22
18
22
21
22
21
21
22
21
22
20
20
252
Forecast
Demand
1,000
1,100
1,200
1,300
1,350
1,350
1,300
1,200
1,100
1,100
1,050
900
13,950
Needed
Production
Each Day
45.5
61.1
54.5
61.9
61.4
64.3
61.9
54.5
52.4
50.0
52.5
45.0
55.4
(on average)
160
161
CHAPTER 13A G G R E G A T E P L A N N I N G
13.2(a) Plan 5
Month
Jan
Feb
Mar
Apr
May
Jun
Expected
Demand
Production
Days
Demand
Per Day
900
700
800
1,200
1,500
1,100
6,20
0
22
18
21
21
22
20
124
41
39
38
57
68
55
Mont
h
Expected
Demand
Production
(@ 35/day)
900
700
800
1,200
1,500
1,100
770
630
735
735
770
700
Jan
Feb
Mar
Apr
May
Jun
6,200
124
= 50 units/day
Constant workforce of 6 persons; subcontract to meet
extra demand: Subcontract cost = $10/unit
Subcontract
130
70
65
465
730
400
1,86
0
Hours/day
Production rate/day = Persons
Hours/unit
8
=6
= 30 units/day
1.6
Total cost:
CT = 34,720 + 18,600 = $53,320
Plan 2 is still preferable, but Plan 6 has lower cost than Plan 5.
Comparing:
Month
Expected
Demand
Jan
Feb
Mar
Apr
May
Jun
900
700
800
1,200
1,500
1,100
Production
(@ 30/day) Subcontrac
t
660
540
630
630
660
600
240
160
170
570
840
500
2,48
0
9,250
0
0
400
0
0
49,600 37,696 49,600 39,680 29,760 34,720
0
0
0 13,888 24,800
0
0 14,880
0
0
0 18,600
0
0 9,000
0
0
0
0
0 9,600
0
0
0
58,850 52,576 68,200 53,968 54,560 53,320
Based simply upon total cost, Plan 2 is preferable. From a practical viewpoint, Plans 2, 4, and 6 will likely have equivalent costs.
Practical implementation of Plan 2 may, for example, require the
employment of eight full-time employees, rather than seven fulltime and one part-time employee. When several plans have
roughly equivalent costs, other parameters gain importancesuch
as the amount of control one would have over production and excess wear on equipment and personnel. Plan 3 should be avoided.
13.3
Period
1
2
3
4
5
6
7
8
Expected Demand
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
14,20
0
CHAPTER 13A G G R E G A T E P L A N N I N G
162
13.3(contd)
Plan A
Period
Production
(Result of
Previous
Month)
Demand
Hire
(Units)
Fire
(Units)
Extra
Cost
5 (May)
2,200
1,800
400
20,000
6 (June)
2,200
2,200
7 (July)
1,800
2,200
400
30,000
8 (Aug)
1,400
1,800
400
30,000 (cost to go from 1,800 in August to 1,400 in
*Note: Period 1 demand was given as 1,400 units. Because we have 200 units in beginning
Sept) inventory, the demand to be met by production is only 1,200
units. Inventory costs at $24,000 (= Jan, 400; July, 400; Aug, 400
= 1,200
20)
plus$140,000
stockouts at $60,000 (= March, 200; May, 400 = 600 100) for a Total
Total
Extra
Cost:
of $24,000 + 60,000 + 140,000 = $224,000.
1 (Jan)
1,200*
1,600
400
Plan B
13.4
Period
Demand
Production
Ending Inv.
Subcon (Units)
Extra
Cost
0
1
2
3
4
5
6
7
8
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
1,400
1,400
1,400
1,400
1,400
1,400
1,400
1,400
200
200
0
0
0
0
0
0
0
400
400
800
800
400
$4,000
30,000
30,000
60,000
60,000
30,000
13.5(a)
Plan C
Period
0
1
2
3
4
5
6
7
8
Demand Production*
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
1,775
1,775
1,775
1,775
1,775
1,775
1,775
1,775
Ending Inv.
200
575
750
725
700
275
0
0
375
Stockouts (Units)
150
25
Extra
Cost
$11,500
15,000
14,500
14,000
5,500
15,000
2,500
7,500
Total Extra Cost:
163
CHAPTER 13A G G R E G A T E P L A N N I N G
(b)Graph of Plan C
Demand
Reg.
(Units)
0
1
2
3
4
5
6
7
8
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600
O.T.
(Units)
End Inv.
(Units)
320
320
200
200
400
400
200
200
Stockouts
(Units)
Extra
Cost
$8,000
8,000
4,000
0
280
44,000
280
44,000
10,000
4,000
Total Extra Cost:
$122,000
Period
Demand
Reg.
(Units)
O.T.
(Units)
End Inv.
(Units)
0
1
2
3
4
5
6
7
8
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600
200
200
320
320
200
200
400
400
400
400
120
200
Stockouts
(Units)
Extra
Cost
$8,000
8,000
18,000
18,000
18,400
160
32,000
10,000
4,000
Total Extra Cost:
$116,400
CHAPTER 13A G G R E G A T E P L A N N I N G
(b)
164
Plan E
Period
Demand
Production
0
1
2
3
4
5
6
7
8
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600
Subcont (Units)
Ending Inv.
Extra
Cost
200
400
400
200
$8,000
8,000
4,000
0
600
45,000
600
45,000
200
15,000
200
4,000
Total Extra Cost: $129,000
Month
Expected
Demand
Jul
Aug
Sep
Oct
Nov
400
500
550
700
800
Unit
Beg
Inventor
y
Over
Perio Demand
(or
d
Short)
Jun
Jul
Aug
Sep
Oct
Nov
Hours
Productio
n
Over
Units
Require
at 20
Personnel Units
d
days
Require at 4
at 8 hrs on staff Produce (or Short)
d
each
d
150
150
10
10
20
0
400
500
550
700
800
Personnel
Required
250
510
540
680
800
1,000
2,040
2,160
2,720
3,200
6.25
12.75
13.50
17.00
20.00
8
6
13
14
17
20
240
520
560
680
800
10
10*
20*
0
0
Costs
Layoff Hire: 40
Hire
$40
7
1
3
3
$80
Layoff: 80
$160
$280
$40
$120
$120
Period
Demand
Production
Production
Ending
(Regular)
(Overtime)
Inv.
Jun
Jul
400
320
Aug
500
320
Sep
550
320
Oct
700
320
Nov
800
320
Dec
320 (OT) cost +
1,580
($72 $48) =700
$37,920 = Extra total
Units made on $72 = 4 hr
overtime (OT) each $18
$48 = 4 hr
each $12
Inventory Holding
Cost
@ $8/unit/month
150
70
110
230
380
480
380
$560 holding cost = $38,480
560
165
CHAPTER 13A G G R E G A T E P L A N N I N G
Holding: $8/unit/month
Back ordering: $16/unit/month
Subcontracting: $40/unit
Overtime: $24/unit ($18/hour over 8 hours:
$72 $48 = $24)
Hiring: $1/unit
Layoff: $2/unit
Unit
Personne
l
Hours Required
Inventor
y
Over
Units
Require
at 20
d
days
Perio Deman
(or
Require
at 4
at 8 hrs
d
d
Short)
d
each
Costs
Productio
Inventory = $8
n
Personnel Units
Over
Hire Layoff
Hire: 40
on staff Produce (or Short) $40
d
Jun
Jul
Aug
400
500
150
150
70
250
430
1,000
1,720
8.00
13.00
8
8
13
320
520
70
90
Sep
Oct
550
700
90
60
460
640
1,840
2,560
13.00
18.00
13
18
520
720
60
80
0
5
Month
Jul
Aug
Sep
Oct
Nov
Dec
Expected Demand
1,000
1,200
1,400
1,800
1,800
1,600
Demand
Production
Ending Inv.
1,000
1,200
1,400
1,800
1,800
1,600
1,000
1,000
1,000
1,000
1,000
1,000
0
0
0
0
0
0
200
400
800
800
600
0
12,000
24,000
48,000
48,000
36,000
$80
Layoff: 80
$560
$920
200
$480
$840
= (70 8)
= (90 8) +
= (60 8)
= (80 8) +
CHAPTER 13A G G R E G A T E P L A N N I N G
166
Demand
Production
(Existing)
Hire (Units)
Layoffs
(Units)
1,000
1,200
1,400
1,800
1,800
1,600
1,300
1,000
1,200
1,400
1,800
1,800
200
200
400
300
Extra Cost
$18,000
6,000
6,000
12,000
200
12,000
Total Extra Cost:$54,000
Plan C
13.10(a)
Period
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Demand
Production
(Units)
1,000
1,200
1,400
1,800
1,800
1,600
1,300
1,300
1,300
1,300
1,300
1,300
Subcont.
(Units)
400
300
Ending Inv.
Extra Cost
300
600
$15,000
700
17,500
600
15,000
100
2,500
0
24,000
0
18,000
Total Extra Cost:$92,000
Jul
1,000
1,300
180
120
Aug
1,200
1,300
180
100
Sep
1,400
1,300
100*
180
Oct
1,800
1,300
260
Overtime:
60
$11,700
10,500
8,500
14,000
Hiring: $30/unit
Layoff: $60/unit
Subcontracting: $60/unit
Stockout: $100/unit
13.11Initial data:
Costs (per unit)
Reg Time
Overtime
Subcontract
Holding
Stockout
Hiring
Layoffs
Initial inventory
0
= $ 30
Units last period = 1,500
= $ 15 extra
per
unit
= not available
= 10
= 50
= 40
= 80
167
CHAPTER 13A G G R E G A T E P L A N N I N G
Period
Demand
Quarter
Quarter
Quarter
Quarter
Total
1
2
3
4
1,400
1,200
1,500
1,300
5,400
Reg.
Time
Producti
on
Change
1,400
1,200
1,500
1,300
5,40
0
@$30/unit
100
200
300
200
Hiring
Layoffs
0
0
300
0
300
100
200
0
200
500
@$40/unit
@$80/unit
Overtime production = $0
Subcontract = $0 and
Inventory holding and shortage cost = $0
(b)The Level plan:
Period
Demand
Quarter
Quarter
Quarter
Quarter
Total
1
2
3
4
1,400
1,200
1,500
1,300
5,40*
0
Cost
Reg. Time
Production
1,350
1,350
1,350
1,350
5,40
0
$162,00
0
Inventory
50
100
50
0
Holding
0
100
0
0
10
0
$1,00
0
Shortage
50
0
50
0
10
0
$5,00
0
Change
Hiring
150
0
0
0
0
0
0
0
0
$0
Total Cost:
Overtime
Subcontract
Holding
$3
0
45
60
40
Initial inventory
=
0
Production
last = 130
period
0
1,800 cases
1,100 cases
1,600 cases
900 cases
Period
Quarter
Quarter
Quarter
Quarter
Total
Demand
1
2
3
4
1,800
1,100
1,600
900
5,40
0
Cost
Total Cost:: $314,000
Reg. Time
Production
1,800
1,100
1,600
900
5,40
0
$162,00
0
Change
500
700
500
700
Hiring
(Increase)
Terminating
(Decrease)
500
0
500
0
1,00
0
0
700
0
700
1,400
$40,00
0
$112,00
0
Layoffs
150
0
0
15
0
$12,00
0
CHAPTER 13A G G R E G A T E P L A N N I N G
168
1
2
3
4
Forecast
Production
1,800
1,100
1,600
900
5,40
0
1,350
1,350
1,350
1,350
5,400
Hiring
Inventory Holding
450
200
450
0
0
0
0
0
0
$0
Terminati
ng
Shortage Change (Increase) (Decrease
)
450
200
450
0
1,10
0
$165,00
50
0
0
0
50
0
0
0
50
0
0
0
0
0
$2,00
$0
Overtime Subcontract
1,800
1,100
1,600
900
5,40
0
1,200
1,200
1,200
1,200
4,80
0
600
300
0
900
Hiring Terminatin
g
Inventor Holding Change (Increas (Decrease)
y
e)
0
100
0
300
0
100
0
300
40
0
100
0
0
0
0
0
0
0
0
100
0
0
0
10
0
169
CHAPTER 13A G G R E G A T E P L A N N I N G
13.14Assuming that back orders are not permitted, the solution is:
CHAPTER 13A G G R E G A T E P L A N N I N G
170
171
CHAPTER 13A G G R E G A T E P L A N N I N G
13.17(a)The cost matrix and the optimal plan are shown below:
Cost Matrix:
Quarter 1
Quarter 2
Beg. inv.
0.2
0.4
0.6
0.8
Reg. time 1
Overtime 1
Subcontract 1
1
1.5
2
1.2
1.7
2.2
1.4
1.9
2.4
Reg. time 2
Overtime 2
Subcontract 2
1.5
2
2.5
1
1.5
2
Reg. time 3
Overtime 3
Subcontract 3
2
2.5
3
Reg. time 4
Overtime 4
Subcontract 4
Demand
2.5
3
3.5
500
Optimal Plan:
Quarter 3
Quarter 4
Ending Inv.
Supply
250
1.6
2.1
2.6
1.8
2.3
2.8
400
80
100
1.2
1.7
2.2
1.4
1.9
2.4
1.6
2.1
2.6
400
80
100
1.5
2
2.5
1
1.5
2
1.2
1.7
2.2
1.4
1.9
2.4
800
160
100
2
2.5
3
750
1.5
2
2.5
900
1
1.5
2
450
1.2
1.7
2.2
400
80
100
2600/305
Quarter 1
Quarter 2
Beg. inv.
100
150
Reg. time 1
Overtime 1
Subcontract 1
400
Quarter 3
Quarter 4
Ending Inv.
Dummy
80
100
Reg. time 2
Overtime 2
Subcontract 2
400
80
100
Reg. time 3
Overtime 3
Subcontract 3
40
800
100
Reg. time 4
Overtime 4
Subcontract 4
20
100
400
50
500
750
(b)The cost of the optimal plan is $2,641. Alternate optimal solutions are possible.
(c)All regular time is used.
(d)40 units are backordered in Quarter 2 and produced on
overtime in quarter 3 at a cost of $.50 each for a total
cost of $20.
900
450
30
100
CHAPTER 13A G G R E G A T E P L A N N I N G
172
0
255
294
321
301
330
320
345
340
0
235
255
290
300
300
290
300
290
Tot
2,506
2,260
Capacities
Ovrtm Subcon
0
20
24
26
24
30
28
30
30
0
12
16
15
17
17
19
19
20
212
135
Subtotal Costs
Regtm
Ovrtm
235
255
290
300
300
290
300
290
20
24
26
1
30
28
30
30
$200
Units
$0
$0
$0
2,260 189 57
2,260,000
245,70 102,600
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
35
10
0
0
10
0
0
0
0
0
10
0
10
0
0
0
0
75
0
20
0
173
CHAPTER 13A G G R E G A T E P L A N N I N G
Type
Summary Table
Units
Cost
2,260
189
57
0
0
75
20
$2,260,000
$245,700
$102,600
$0
$0
$0
$0
Regtm
Ovrtm
Subcon
Holdng
Shortg
Increase
Decreas
e
0
255
294
321
301
330
320
345
340
0
275
275
275
275
275
275
275
275
Tot
2,506
2,200
Type
0
20
24
26
24
30
28
30
30
0
12
16
15
17
17
19
19
20
212
135
Subtotal Costs
Summary Table
Units
255
275
275
275
275
275
275
275
2,180
2,180,00
0
0
19
26
24
30
28
30
30
$0
$0
$0
0
0
15
2
17
17
19
20
0
0
0
0
0
0
0
0
0
0
5
0
8
0
21
15
0
20
0
0
0
0
0
0
0
0
0
0
0
0
0
0
187 90
243,100 162,000
0
0
49
0
20
0
0
0
Cost
Regtm
2,180
$2,180,000
Ovrtm
187
$243,100
Subcon
90
$162,000
Holdng
0
$0
Shortg
49
$0
Increase
20
$0
Decrease
0
$0
Total cost = $2,585,100, or about $50,000
savings
Capacities
Regtm Ovrtm Subcon
Init
Jan
0
255
0
235
0
20
0
12
Feb
294
255
24
16
Mar
321
290
26
15
Apr
301
300
24
17
May
330
300
30
17
Regtm
235
255
290
300
300
$200
$0
$0
$0
Units
Holdng Shortg Increas Decreas
e
e
Ovrtm
Subcon
20
24
15
20
26
35
10
30
CHAPTER 13A G G R E G A T E P L A N N I N G
2,260
Ovrtm
Subcon
Holdng
Shortg
Increase
Decrease
$2,260,00
0
189
$264,600
57
$102,600
0
$0
0
$0
75
$0
20
$0
Total cost =
174
Method
Produce
to demand (let workforce
vary)
13.21
(a)
Estimated
Reg.
Shortages: Lost sales Shortages not
carried from month to month
Time
All months Billable
$1,200
$1,800 Overtime
$200
$0 Forrester
$0
$0
Billable $1,000
Reg. Time
Overtime
Forrester
Units
Month
hours Capacities
CPAs
Hours
Cost
Hours
Cost
Hours
Cost
Month Demnd Regtm Ovrtm Subcon Regtm Ovrtm Subcon Holdng Shortg Increase Decrea
Jan
660
5
800
$25,000
0
$0
0
$0
se
Feb
550
5
800
$25,000
0
$0
0
$0
Init Mar0 1,100
0
05
0
800
$25,000
300
$18,750
0
$0
Jan
255
235
20
12
235 0
0
0
0
0
Apr
1,320
5
800
$25,000
400
$25,000
120
$15,000
20
May
715
5
800
$25,000
0
$0
0
$0
Feb
294
255
24
16
255 15
0
0
20
0
June
649
5
800
$25,000
0
$0
0
$0
24
$150,00
70
$43,75
12
$15,00
Mar
321
290
26
15
290 5
0
0
35
0
0
0
0
0
0
26
Apr
301
300
24
17
300
0 in business,
0
10
0 to
(b)With
the0increase
5 accountants
appear
1 be necessary. There is still a need for overtime during
May
330
300
30
17
300 30 the
0
0
0
tax season
(about
the 0same as in0Problem 13.20),
June
320
290
28
19
290 28 but
0 savings0 in Forresters
0
there2 is a big
pay 10
(which
2,260
$2,260,000
189
$226,800
57
$102,600
0
$0
0
$0
75
$0
20
$0
Total cost =
$2,589,400
600
500
1,000
1,200
650
590
Reg. time
CPAs
billable
hours
Reg. Time
cost
4
4
4
4
4
4
640
640
640
640
640
640
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$120,00
0
$0
$20,000
$20,000
$625
$0
$43,12
5
0
40
240
0
0
28
0
$0
$5,000
$30,000
$0
$0
$35,00
0
175
CHAPTER 13A G G R E G A T E P L A N N I N G
CASE STUDIES
1
SOUTHWESTERN UNIVERSITY: G
Weekday
=
$728,000
= $43,200
= $32,400
= $10,125
$813,72
1st shift
2nd shift
3rd shift
5
5
6
4
6
8
4.7
5.3
6.6
16.
6
2.5
2.5
3
2
3
4
2.4
2.7
3.3
8.
4
required
2.8
positions
= 14 persons
Twenty-six officers is more than enough to handle the normal
workload during the three summer months. However, during the
remaining nine months of the year, the police department is almost two persons short. Obviously, some overtime is currently
being used to meet the demands of the normal workweek.
3.What would be the additional cost of the chiefs proposal?
How would you suggest that the chief justify his request?
Salary: 4 officers $28,000 per year = $112,000
Overtime: no additional cost, as subcontracting and overtime costs are the same.
To justify his proposal, the chief should point out that two
positions (representing $56,000) are needed to pursue the universitys request for more crime prevention, safety, and
health programs. The other two positions could save up to
$18,720
in
overtime premiums (total OT of 2,400 hours minus football
game OT of 1,360 hours time $18 per hour) and are needed to
maintain the desired level of police services. On a per hour
basis, the salaried services are more cost effective than using
overtime or subcontracting (@ $18/hour).
CHAPTER 13A G G R E G A T E P L A N N I N G
ANDREW-CARTER, INC.
176
Total
Variable
Cost
Total
Fixed
Cost
Total
Cost
$179,730
188,930
$41,000 $220,730
33,500 222,430
183,430
34,000
217,430
To (Amount)
177
CHAPTER 13A G G R E G A T E P L A N N I N G
Aggregate Planning
Time periods 52
Shortages: Back ordersCarry shortages from period to
period
All pds
1,900
0
0
$0
$8.00
Pd
Init
April 15
22
29
May 6
13
20
27
June 3
10
17
24
July 1
8
15
22
29
Aug. 5
12
19
26
Sept. 2
9
16
23
30
Oct. 7
14
21
28
Nov. 4
11
18
25
Dec. 2
9
16
23
30
Jan. 6
13
20
27
Feb. 3
10
17
24
Mar. 3
10
17
24
31
Apr. 7
Tot
Demnd
Regtm
73
1,829
1,820
1,887
1,958
2,011
2,063
2,104
2,161
2,258
2,307
2,389
2,434
2,402
2,385
2,330
2,323
2,317
2,222
2,134
2,065
1,973
1,912
1,854
1,763
1,699
1,620
1,689
1,754
1,800
1,864
1,989
2,098
2,244
2,357
2,368
2,387
2,402
2,418
2,417
2,324
2,204
2,188
2,168
2,086
1,954
1,877
1,822
1,803
1,777
1,799
1,803
1,805
107,544
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
98,800
Schedule
Ovrtm
Subcon Regtm
0
250
250
250
250
250
250
250
250
250
250
250
250
250
250
250
250
250
250
234
165
73
12
0
0
0
0
0
0
207
250
250
250
250
250
250
250
250
250
250
250
250
250
250
186
54
0
0
0
0
0
0
0
8,931
Subtotal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
173
167
72
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
427
Costs
$10
$0.12
$20.0
$5.63 $15.7
3
Units
Ovrtm Subcon Holdng Shortg Incres Decre
s
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 234
1,900 165
1,900
73
1,900
12
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900 207
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900
250
1,900 250
1,900 250
1,900 186
1,900
54
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
98,800 8,931
0 71,448
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
173
167
72
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
427
4,27
394
724
987
1,179
1,318
1,405
1,451
1,440
1,332
1,175
936
652
400
165
0
0
0
0
0
0
0
0
46
183
384
664
875
1,021
1,328
1,614
1,775
1,827
1,733
1,526
1,308
1,071
819
551
284
110
56
18
0
0
0
23
101
198
321
422
519
614
32,949
3,953.9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0