planning assignment
SCM 301: Aggregate Planning Assignment
You have been given the following information about production of a product for ABC Company:
( F a c t s g i v e n C os t p e r un i t: $ 12 . 50 O T c o s t p e r un i t: $ 18 . 75 H o l d i n g c o s t: $ 10 . 00 L a b o r h r / un i t 8 L a b o r h r s p e r e m p p e r m on th 160 . 00 P l a n t c a p a c i ty 1 , 800 C os t t o h i r e / t ra i n e mp $ 800 . 00 C os t t o f i r e e mp $ 500 . 00 B e g i nn i n g / e nd i n g w o r k f o r c e 9 0 B e g i nn i n g i n v e n t o r y 500 D e m a n d (i n u n i t s) P e r i o d 1 1 , 920 P e r i o d 2 2 , 160 P e r i o d 3 1 , 440 P e r i o d 4 1 , 200 P e r i o d 5 2 , 040 P e r i o d 6 2 , 400 P e r i o d 7 1 , 740 P e r i o d 8 1 , 500 )
a. Develop a level production plan for ABC Company. NOTE: The beginning and ending
inventory units should be 500 units.
b. Develop a chase production plan for ABC Company. NOTE: The beginning and ending
inventory units should be 500 units.
c. If you had to recommend a plan, which would you choose? What are the advantages /
disadvantages of this recommended plan?