Aggregate Production Planning

Research two (2) manufacturing or two (2) service companies that manage inventory and complete this assignment.

In order to maximize the total profit, the monthly production plan should be 1900 unit/month for Model S and 650 unit/month

1. a. The simulation indicates that 584 is the optimum stocking quantity. Daily profit at this stocking quantity is $331.4346.

One of specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?

10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

The available labor for utilization = Total number of workers * Hours per day *

Most stores have been in existence for 10 or more years, and were indirectly managed by either Emerson or Wood when they were first established. Because of this stability, the estimate for the coming year‟s labor requirements is identical to the current year. So, for example, they currently have 1,200 individuals working as shift leader, and expect to need 1,200 individuals to work as shift leaders for the coming year as well.

* Least expensive of the three strategies due to the lack of excess inventory and employee overtime

5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)

Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.

c) Estimated 600 additional direct workers and 200-240 additional indirect workers would be required for factory production.

3. What weekly production plan for standard and light weight compressors would result in the highest financial return for Catawba?

Before, the concept of demand forecast was to serve the key functional groups in achieving their own interest. Facing the new challenges, forecast needed to be more accurate. And therefore it needed a new concept that is to have a consensus forecasting that would accurately reveal market demand and align the needs of key actors in the forecasting process. Leitax implemented two specific changes in forecasting process. The first one is to switch the focus from sell-in to sell-through and second one is to ignore capacity constraints.

The biggest problem of changing to a level production is the cash flow. As it changes to a level production, it will produce 542 dollars each month. However, the first seven months it is not selling more than 160 dollars each month

complex. The basic objective here is that of taking the cost of expected production operations in the