aggregate planning ie 314: operations management kamal lecture 7
TRANSCRIPT
Aggregate PlanningIE 314: Operations Management
KAMAL
Lecture7
EXERCISE 13.3
13.3 (cont’d)
Plan AProductio
n
(Result of
PreviousInventor
yStockou
t Hire Layoff Personnel
Period Demand Month) (Units) (Units) (Units) (Units)Cost
1 (Jan) 1,400 1,600 400 200$15,000 (cost to go from 1,600 in Jan to 1,400 in Feb)
2 (Feb) 1,600 1,400 200 200 10,000 (cost to go from 1,400 in Feb to 1,600 in Mar)
3 (Mar) 1,800 1,600 200 10,000
4 (Apr) 1,800 1,800 —5 (May) 2,200 1,800 400 400 20,0006 (June) 2,200 2,200 —
7 (July) 1,800 2,200 400 400 30,000
8 (Aug) 1,400 1,800 800 40030,000 (cost to go from 1,800 in August to 1,400 in Sept)
1,800 $400 Total $115,000 @ $20 @ $100 Personnel Cost:
=$36,000 =$40,000
EXERCISE 13.4
Plan B
Period Demand Production Ending Inv. Subcon
(Units)Extra Cost
0 200
1 1,400 1,400 200 — $4,000
2 1,600 1,400 0 — —
3 1,800 1,400 0 400 30,000
4 1,800 1,400 0 400 30,000
5 2,200 1,400 0 800 60,000
6 2,200 1,400 0 800 60,000
7 1,800 1,400 0 400 30,000
8 1,400 1,400 0 — Total Extra Cost:
$214,000
EXERCISE 13.5
Plan C
Period Demand
Production* Ending Inv. Stockouts
(Units) Extra Cost
0 200
1 1,400 1,775 575 $11,500
2 1,600 1,775 750 15,000
3 1,800 1,775 725 14,500
4 1,800 1,775 700 14,000
5 2,200 1,775 275 5,500
6 2,200 1,775 0 150 15,000
7 1,800 1,775 0 25 2,500
8 1,400 1,775 375 7,500
Total Extra Cost: $85,500
EXERCISE 13.6
Plan D
Reg. O.T. End Inv. Stockouts Extra
Period Demand (Units) (Units) (Units) (Units) Cost
0 200
1 1,400 1,600 — 400 $8,000
2 1,600 1,600 — 400 8,000
3 1,800 1,600 — 200 4,000
4 1,800 1,600 — — 0
5 2,200 1,600 320 — 280 44,000
6 2,200 1,600 320 — 280 44,000
7 1,800 1,600 200 — 10,000
8 1,400 1,600 — 200 4,000
Total Extra Cost:
$122,000
EXERCISE 13.6
Reg. O.T. End Inv. Stockouts Extra
Period Demand (Units) (Units) (Units) (Units) Cost
0 200
1 1,400 1,600 — 400$8,00
0
2 1,600 1,600 — 400 8,000
3 1,800 1,600 80 280 9,600
4 1,800 1,600 320 40024,00
0
5 2,200 1,600 320 12018,40
0
6 2,200 1,600 320 — 16032,00
0
7 1,800 1,600 200 —10,00
0
8 1,400 1,600 — 200 4,000
Total Extra Cost:
$114,000
EXERCISE 13.6
(b)Plan E
Period Demand ProductionSubcont (Units) Ending Inv.
Extra Cost
0 2001 1,400 1,600 400 $8,0002 1,600 1,600 400 8,0003 1,800 1,600 200 4,0004 1,800 1,600 05 2,200 1,600 600 45,0006 2,200 1,600 600 45,0007 1,800 1,600 200 15,000
8 1,400 1,600 200 4,000
Total Extra Cost:
$129,000
Unused Capacity Total Supply
Jan Feb Mar Apr May Jun
January
Regular Time
Over Time
Sub. Contract.
February
Regular Time
Over Time
Sub. Contract.
March
Regular Time
Over Time
Sub. Contract.
April
Regular Time
Over Time
Sub. Contract.
May
Regular Time
Over Time
Sub. Contract.
June
Regular Time
Over Time
Sub. Contract.
Total Demand
800
800
800
800
1100
1100
200
300
300
300
100
300
300
150
350
100
100
800
2001000 1200 1250 1450 1400 1400
800
800
1100
1100
300
300
300150
300350
400
400
800
7900
12
12
12
12
11
11
16
16
16
16
16
16
18.5
18.5
17
EXERCISE 13.16
Total Cost = 4 (800*12) + (200*16 ) + (100*17) + 5(300*16) + 2(1100*11) + (500*18.5)
= 38,400 + 3,200 + 1,700 + 24,000 + 24,200 + 9,250
Total Cost = $100,750
150
150
130
150
150
10
10
20
10
10
50
10
150 160 130 200 230
100
100
100
100
100
135
125
128
103
131
134
131
128
Unused Capacity Total Supply
1 2 3 4 5
1
Regular Time
Over Time
Sub. Contract.
2
Regular Time
Over Time
Sub. Contract.
3
Regular Time
Over Time
Sub. Contract.
4
Regular Time
Over Time
Sub. Contract.
5
Regular Time
Over Time
Sub. Contract.
Total Demand
20
20
20
150
150
150
150
10
10
10
50
870
150
EXERCISE 13.18
Total Cost = 4 (150*100) + (130*100 ) + 2(10*128) + (10*134)+ (30*131) + (20*103) + (10*125) +(50*135)
= 60,000 + 13,000 + 2,560 + 1,340 + 3,930 + 2,060 + 1,250 + 6,750
Total Cost = $90,890
EXERCISE 13.20
Estimated
Reg. time
Billable billableReg. Time “Overtime” Overtime Forrester Forrester
Month hours CPAs hours cost hours cost hours cost
Jan 600 4 640 $20,000 0 $0 0 0
Feb 500 4 640 $20,000 0 $0 0 $0
Mar 1,000 4 640 $20,000 320 $20,000 40 $5,000
Apr 1,200 4 640 $20,000 320 $20,000 240 $30,000
May 650 4 640 $20,000 10 $625 0 $0
June 590 4 640 $20,000 0 $0 0 $0
$120,000 650 $40,625 280
$35,000
Total cost = $120,000 + $40,625 + $35,000 = $195,625
EXERCISE 13.22
EXERCISE 13.22
Old Model Sales= Avg. passengers * Net price/seat
= 80 * (140 - 25) = $9,200
New Approach Sales = 65*(80-25)+35*(190-25)
= 3,575 + 5,775 = $9,350
The new model is slightly better in sales.
HW
13.11
13.12
13.17
13.19