ASSIGNMENT MODULE 2

AGGREGATE PLANNING

Delta Company plans their workforce and production levels for the twelve-month period
from January to December. Delta Company is a Fast Moving Consumer Goods (FMCG) that
produces an electronic product to fulfill the customer’s demand. The forecast demands for the
next 12 months will be as follows:

Months Forecasted Demand

1 2.126
2 2.423
3 2.589
4 2.299
5 2.216
6 2.338
7 2.603
8 2.421
9 2.284
10 2.367
11 2.637
12 2.255

Remark:
The forecast data on each month added with the two last digits from group members student
ID number.

Aaa 2401889312
Bbb 2401764920
Ccc 2401928237
Ddd 2401634315

Hence, the total sum is 12 + 20 + 37 + 15 = 84

The forecast for year 1 became:

2.434 + 84 = 2.518
*Applied it to all forecast data.

Find out which aggregate planning method is the best to make Delta Company pay least
cost (Zero Inventory, Constant Workforce Plan, Overtime + Subcontract, and Overtime
+ Back Order). Assume that each worker stays on the job for one month and that Delta
Company currenly has 86 workers, one worker can make package in one day shift of 8 hours
a day with maximum 3 hours of overtime. With 22, 19, 21, 20, 23, 23, 22, 20, 21, 21, 23 and
19 working days. The company estimates that they will have 145 packages on hand at the end
of current month and expected ending inventory at 12th month is to be 55 packages.
cost of hiring one worker = $ 270
cost of firing one worker = $ 348
cost of holding one unit of inventory for one month =$5
cost of production per unit = $ 145
cost of subcontract = $ 154
cost of back order = $ 146
wage/month = $ 2.175
overtime cost/hour = $ 27
number of working days per worker = 20 days
number of unit production = 1.410 units
number of workers = 86 people
 Number of workers on last period 86 worker Period Number of working days
Work Hours/Day 8 hours Jan - 23 22
Max Overtime per Worker 3 hours Feb - 23 19
Ending Inventory at December 2023 145 pax Mar - 23 21
Expected Ending Inventory at December 2022 55 pax Apr - 23 20
Number of Working Days per Worker 20 May - 23
Number of Unit Production 1410 23
Cost of Hiring One Worker $ 270 Jun - 23 23
Cost of Firing One Worker $ 348 Jul - 23 22
Cost of Holding One Unit of Inventory for One Month $5 Aug - 23 20
Cost of Subcontract $ 154 Sep - 23 21
Cost of Backorder/Lost of Sales $ 146 Oct - 23 21
Wage/Month $ 2175 Nov - 23 23
Overtime Cost/Hour $ 27 Dec - 23 19

Zero Inventory Plan (ZIP)

K is the amount of goods that a worker can produce in one working day.

Number of Production
Number of Working Days
K=
Number of Worker
1410
20
K= =0,8197
86
Demand Forecast + NIM

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2.288 2.585 2.751 2.461 2.378 2.500 2.765 2.583 2.446 2.529 2.799 2.417