1 / 21

Aggregate Production Example

Aggregate Production Example. From the following information prepare aggregate plan using: 1- Pure Chase Strategy 2- Pure Level Strategy. 3- Minimum Workforce with Subcontracting. Which is the best plan (calculate costs)?. DEMAND, WORKING DAYS PER MONTH. COST INFORMATION.

kamuzu
Download Presentation

Aggregate Production Example

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Aggregate Production Example

  2. From the following information prepare aggregate plan using: 1- Pure Chase Strategy 2- Pure Level Strategy. 3- Minimum Workforce with Subcontracting. • Which is the best plan (calculate costs)?

  3. DEMAND, WORKING DAYS PER MONTH

  4. COST INFORMATION

  5. BEGINNING INVENTORY, CURRENT WORKERS

  6. 1- Pure Chase Strategy

  7. 1- Pure Chase Strategy

  8. CHASE STRATEGY REQUIRED CALCULATIONS – REQUIRED WORKERS

  9. 1- Pure Chase Strategy Cost($)

  10. 2- Pure Level Strategy

  11. 2- Pure Level Strategy

  12. LVEL STRATEGY REQUIRED CALCULATIONS – WORKERS REQUIRED • Total net demand =8000- 400= 8000 units • Total working days (6 months)= 125 DAYS • Required workers= total net demand* time required to produce a unit Total working days* daily working hours per day 8000*5/(125*8) = 40 workers Or Daily production = 8000/ 125= 64 units Units produced= Daily production * working days per month Jan= 64 units*22 days= 1408 units

  13. LVEL STRATEGY REQUIRED CALCULATIONS UNITS PRODUCED

  14. 2- Pure Level Strategy Cost($)

  15. 3- Minimum Workforce with Subcontracting

  16. 3- Minimum Workforce with Subcontracting

  17. 3- Minimum Workforce with Subcontracting • SUBCONTRACT+ UNITS PRODUCED = REQUIRED PRODUCTION • Minimum Workforce = (APRIL DEMAND ((LOWEST)) :- • 900*5/ (21 DAYS* 8 HOURS) = 26.8 = 27 WORKERS.

  18. 3- Minimum Workforce withSubcontracting- CALCULATING UNIT PRODUCED

  19. 3- Minimum Workforce withSubcontracting- - HOW INVENTORY RESULTS IN APRIL? • AFTER CALCULATING UNITS PRODUCED, WE SEE THAT IN PRODUCTION IN THIS MONTH IS MORE THAN DEMAND (907-900), SO THE DIFFERENCE (7 UNITS ONLY) IS THE MONTHLY INVENTORY.

  20. 3- Minimum Workforce with Subcontracting-COST($)

  21. Which is the best plan ?

More Related