9:58 7 < Back LGT2106 Mid-term Version C ACT EDTO? par Dour ou Question 1. Aggregate Planning (25 marks) Digital Tech. i

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9 58 7 Back Lgt2106 Mid Term Version C Act Edto Par Dour Ou Question 1 Aggregate Planning 25 Marks Digital Tech I 1 (53.56 KiB) Viewed 24 times

9 58 7 Back Lgt2106 Mid Term Version C Act Edto Par Dour Ou Question 1 Aggregate Planning 25 Marks Digital Tech I 2 (40.28 KiB) Viewed 24 times

9 58 7 Back Lgt2106 Mid Term Version C Act Edto Par Dour Ou Question 1 Aggregate Planning 25 Marks Digital Tech I 3 (35.06 KiB) Viewed 24 times

9 58 7 Back Lgt2106 Mid Term Version C Act Edto Par Dour Ou Question 1 Aggregate Planning 25 Marks Digital Tech I 4 (30.28 KiB) Viewed 24 times

9:58 7 < Back LGT2106 Mid-term Version C ACT EDTO? par Dour ou Question 1. Aggregate Planning (25 marks) Digital Tech. is a company that produces webcams used for recording or streaming the video on the Internet. The company would like to develop an aggregate production plan for the next six months from January to June. After conducting a comprehensive marketing research, the managers have obtained the following demand forecast for each month: January February March Apr May 600 800 900 20 all 5G Demand forecast Number of working days Besides, after discussing with the finance department, the managers have also summarized the cost information as follows: Inventory holding cost Marginal cost of stockout Marginal cost of subcontracting Hiring and training cost $20 545 $110 $500 worker 5000 worker Layoff cost Production hours required bor Straight-time con (first eight hours per day 525 hour Overtime cost At the beginning of January, there are 50 units of initial inventory, and 20 workers. The following assumptions are made: - Inventory and backorder costs are calculated based on the ending inventory at the end of each month. - Hiring or layoff costs are incurred when the total number of workers changes. - Once scheduled, all workers will produce at their full potential each month. Consider the following three strategies: (1) A level strategy by maintaining a constant workforce of 22 workers for all 6 months; absorb demand variations by inventory and backorders. (2) A constant workforce of 18 workers; use overtime to fulfill extra demands. (3) A constant workforce of 16 workers; use subcontracting to fulfill extra demands. Question:
9:58 7 < Back LGT2106 Mid-term Version C fulfill extra demands. (3) A constant workforce of 16 workers; use subcontracting to fulfill extra demands. Question: Complete the aggregate plan for each strategy in the following three tables respectively. Compare the three strategies and find out the strategy with the least total costs. (7 marks for each plan; 4 marks for comparison) Plan 1: level strategy with inventory and backorder costs incurred Demand forecast Beginning inventory Production required Production hours required Number of workers Regular hours available Overtime hours planned Actual production Units subcontracted Ending inventory Cost Straight-time cost Overtime cost Hiring and training cost Layoff cost Subscontracting cost Inventory cost Backorder cost all 5G January February March April May Plan 2: constant workforce with overtime January February March April May June Total Demand forecast Beginning inventory Production required
9:58 ✔ < Back LGT2106 Mid-term Version C Plan 2: constant workforce with overtim January February March April May June Total Demand forecast Beginning inventory Production required Production hours required Number of workers Regular hours available Overtime hours planned Actual production Units subcontracted Ending inventory Cost il 5G Straight-time cost Overtime cost Hiring and training cost Layoff cost Subcontracting cost Inventory cost Backorder cost
9:58 ✔ < Back LGT2106 Mid-term Version C Plan 3: constant workforce with subcontractin January February March April May June Total Demand forecast Beginning inventory Production required Production hours required Number of workers Regular hours available Overtime hours planned Actual production Units subcontracted Ending inventory Cost Straight-time cost Overtime cost Hiring and training cost Layoff cost Subcontracting cost 5G Inventory cost Backorder cost