bsop 334 mtls resource & cap planning week 1 homework

-Why is it important to match supply and demand? If a manager believes that supply and demand will not be equal, what actions could the manager take to increase the probability of achieving a match?

-List the key ways that organizations compete

-Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound?

What is aggregate planning? What is its purpose?

Briefly discuss the advantages and disadvantages of each of these planning Strategies.

·       a. Maintain a level rate of output and let inventories absorb fluctuations in demand.

·       b. Vary the size of the workforce to correspond to predicted changes in demand requirements.

·       c. Maintain a constant workforce size, but vary hours worked to correspond to predicted demand requirements

Refer to Example 2. Determine whether a plan to use subcontracting at a maximum rate of 50 units per period as needed with no overtime would achieve a lower total cost than the plan shown in Example 2. Again, plan for a zero inventory balance at the end of period 6.