Advantages and disadvantages of varying the workforce according to the demand requirement Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

Question

Want to see the full answer?

Answer 1

Question

Chapter 13, Problem 9DQ

Summary Introduction

To define: Advantages and disadvantages of varying the workforce according to the demand requirement

Introduction: The aggregate plan is the output of sales and operations planning. The major concern of aggregate planning is the production time and quantity for the intermediate future. Aggregate planning would encompass a time prospect of approximately 3 to 18 months.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

QUESTION THREEa) Zambia Breweries has a backlog of 250 crates of Fanta drinks at the end of December. The demand of Fanta drinks is expected to be 400 crates in January, 500 crates in February and 550 crates in March. Each worker can produce 50 crates of drinks per month with regular wage costing the company K10 000 per worker per month. Hiring cost has been calculated to be K25 000 per. Hiring cost has also been calculated to be K50 000 per worker. Backlog cost have been determined to cost the company K250 per worker. There are no cost associated with carrying the inventory. Develop a level of production plan (aggregate plan) and determine the cost. b) Explain why aggregate planning is necessary in production and operation management.c) Define the meaning and what happens at each of these aggregate capacity planning;i) Matching Demand approachii) Level Capacity approach.

QUESTION 2 NAK Consult Ltd is a construction company with many contracts being executed concurrently. A large number of workers are on various construction sites. NAK Consult Ltd has an internal audit department and the team is currently reviewing cash wages systems within the company. The following information is available concerning the wages systems: • Workers on each site are controlled by a foreman. The foreman has a record of all employee numbers and can issue temporary numbers for new employees. • Any overtime is calculated by the computerized wages system and added to the standard pay. • The two staff in the wages department make amendments to the computerized wages system in respect of employee leave, illness, as well as setting up and maintaining all employee records. • The computerized wages system calculates deductions from gross pay, such as employee taxes (PAYE), and other statutory deductions. • Finally, a list of net cash payments for each employee is produced. Cash is…

QUESTION TWO * Blue Inc. produces a product that has a 6 month demand cycle, as shown below. Each unit requires 10 worker hours to produce, at a labour cost of K6, 000 per hour regular rate or K9, 000 per hour overtime rate. The total cost per unit is estimated at K200, 000 but units can be subcontracted at a cost of K208, 000 per unit. There are currently 20 workers employed in the subject department, and hiring and training costs for additional workers are K300,000 per person; whereas layoff costs are K400,000 per person. Company policy is to retain a safety stock equal to 20% of the monthly forecast, and month's safety stock becomes the beginning inventory for the next month. There are currently 50 units in stock carried at a cost of K2, 000 per unit month. Unit shortage, or stockpots, has been assigned a cost of K20, 000 per unit month. February March April 400 100 21 21 168 May 200 22 176 June 300 20 January 300 Forecast demand 500 Work days 22 19 176 152 168 160 Work hour at 8…