Running Head: 3D SYSTEMS CORPORATION 1

3D Systems Corporation

Student’s Name
Institutional Affiliations
3D SYSTEMS CORPORATION 2

3D Systems Corporation

The semi-annual production plan as the name suggest will be a six months plan for the

drug 3D printing technology in a pharmaceutical firm that will take into account various factors

that distinctly defines its production process. To achieve this objective, the production plan will

use the notional demand and inventory. The notional demand will represent the total quantity of

both goods and services that will be demanded in an equilibrium market (Davis & Charemza,

2012). However, for the notional demand to be valid, the market equilibrium will consider the

period during which production plan is binding. The plan will pay keen interest in the labor

hours consumed, the number of worker requirements with consideration for the standard

workweek, current inventory levels, and receipts of new inventory during each month, and

varying demand levels for each month of production will be estimated.

In this production plan, the pharmaceutical firm intends to produce personalized medicine

using 3D printing technology that is best suited for patient’s needs. In comparison with the

conventional tablets available in today’s pharmacies, the 3D printing technology will develop

medicines that are more suitable in terms of size and appearance. As such, the common

challenges associated with intake of drugs such as size, unpleasantness among other problems

linked to intake of pills will be addressed.

Therefore, given an estimated notional demand of 21000 units, the average notional

demand semi-annually will be 21000/6, amounting to 3500 per month. With a standard labor rate

of 0.72, the aggregate workforce need will equate to

3500 * 0.72 = 2520 units

Number of units per hour given 180 regular hours = 2520/180 = 14 workers
3D SYSTEMS CORPORATION 3

Semi-annual Production Plan

Month 1 2 3 4 5 6

Demand 700 4000 1500 2000 4000 5000

Production 3500 3500 3500 3500 3500 3500

Cumulativ
700 4700 6200 8200 12200 17200
e Demand
Cumulativ

e 3500 7000 10500 14000 17500 21000

Production
Excess
2800 2300 4300 5800 5300 3800
Units

Estimated Cost of Production

Cost Per Unit ($) Total Cost ($)

Materials 50 50*21000 = 1050000
Labor 15 15*21000 = 315000
Total Cost 1365000

Consistent with the semiannual production plan figures worked out above, the total cost for the

semiannual production period is $1,365,000

Reference
3D SYSTEMS CORPORATION 4

Davis, C. M., & Charemza, W. (2012). Models of disequilibrium and shortage in centrally

planned economies. Springer Science & Business Media.