• Author / Uploaded
• Rendy Franata

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exhibit 1 Level production to meet peak demand month

december

production plan shipment forecast production plan shipments inventory extraordinary labor cost number of workers hirings layoffs workers month overtime cost of alternative 1 hirings cost layoffs cost inventory holding cost labor cost regular overtime

january

february

march

4400 8440 4400

4400 8440 4400

6000 8440 6000

240

4280

8320

10760

160

211 51 0 0

211 0 0 0

211 0 0 0

cost quantity total $ 1,800 51 $ 91,800 $ 1,200 0 $ $ 8 75000 $ 600,000 $ $

2,400 3,300

2532 $ 6,076,800 0 $ $ 6,768,600

april

may

june

july

august

septemberoctober

november

8000 8440 8000

6600 8440 6600

11800 8440 11800

13000 8440 13000

11200 8440 11200

10800 8440 10800

7600 8440 7600

6000 8440 6000

11200

13040

9680

5120

2360

0

840

3280

211 0 0 0

211 0 0 0

211 0 0 0

211 0 0 0

211 0 0 0

211 0 0 0

211 0 0 0

211 0 0 0

december totals

5600 8440 5600

95400 101280 95400

6120

75000

211 0 0 0

2532 51 0 0

exhibit 2 Chase production plan with constant workforce and overtime month

december

production plan shipment forecast production plan shipments inventory extraordinary labor cost number of workers hirings layoffs workers month overtime cost of alternative 1 hirings cost layoffs cost inventory holding cost labor cost regular overtime

january

february

march

4400 4160 4400

4400 4400 4400

6000 6000 6000

240

0

0

0

160

199 39 0 0

199 0 0 0

199 0 0 0

cost quantity total $ 1,800 39 $ 70,200 $ 1,200 0 $ $ 8 0 $ $ $

2,400 3,300

2388 $ 5,731,200 375 $ 1,237,500 $ 7,038,900

april

may

june

july

august

septemberoctober

november

8000 8000 8000

6600 6600 6600

11800 11800 11800

13000 13000 13000

11200 11200 11200

10800 10800 10800

7600 7600 7600

6000 6000 6000

0

0

0

0

0

0

0

0

199 0 0 1

199 0 0 0

199 0 0 96

199 0 0 126

199 0 0 81

199 0 0 71

199 0 0 0

199 0 0 0

7960

december totals

5600 5600 5600

95400 95160 95400

0

0

199 0 0 0

2388 39 0 375

exhibit 3 Chase production plan with varying workforce month

december

production plan shipment forecast production plan shipments inventory extraordinary labor cost number of workers hirings layoffs workers month overtime cost of alternative 1 hirings cost layoffs cost inventory holding cost labor cost regular overtime

january

february

march

4400 4160 4400

4400 4400 4400

6000 6000 6000

240

0

0

0

160

104 0 56 0

110 6 0 0

150 40 0 0

cost quantity total $ 1,800 256 $ 460,800 $ 1,200 276 $ 331,200 $ 8 0 $ $ $

2,400 3,300

2379 $ 5,709,600 0 $ $ 6,501,600

april

may

june

july

august

septemberoctober

november

8000 8000 8000

6600 6600 6600

11800 11800 11800

13000 13000 13000

11200 11200 11200

10800 10800 10800

7600 7600 7600

6000 6000 6000

0

0

0

0

0

0

0

0

200 50 0 0

165 0 35 0

295 130 0 0

325 30 0 0

280 0 45 0

270 0 10 0

190 0 80 0

150 0 40 0

december totals

5600 5600 5600

95400 95160 95400

0

0

140 0 10 0

2379 256 276 0

exhibit 4 Aggregate plan for macpherson refrigeration limited month

december

production plan shipment forecast production plan shipments inventory extraordinary labor cost number of workers hirings layoffs workers month overtime cost of alternative 1 hirings cost layoffs cost inventory holding cost labor cost regular overtime

january

february

march

4400 8000 4400

4400 8000 4400

6000 8000 6000

240

3840

7440

9440

160

200 40 0 0

200 0 0 0

200 0 0 0

cost quantity total $ 1,800 139 $ 250,200 $ 1,200 0 $ $ 8 11680 $ 93,440 $ $

2,400 3,300

2528 $ 6,067,200 0 $ $ 6,410,840

inventory no problem because low cost overtime allow, but in a little because lead to inefficiency hiring/layoff not allow, because it is complicated

april

may

june

july

august

8000 8000 8000

6600 8000 6600

11800 8000 11800

13000 8000 13000

11200 9160 11200

9440

10840

7040

2040

0

200 0 0 0

200 0 0 0

200 0 0 0

200 29 0 0

229 70 0 0

assumption there's no overtime, and layoff hiring 40 worker in the beginning all the production plan is in the maximal capacity (constant) remain inventory is no problem

result the production plan excees the shipment or forecast create a big inventory in the ending there's no cost for overtime and layoff e lead to inefficiencycost for hiring only in the beginning, for 40 worker only compare exhibit 1 exhibit 2 exhibit 3 Linda

total production plan total cost total inventory 101280 $ 6,768,600 75000 95160 $ 7,038,900 0 95160 $ 6,501,600 0 96000 $ 6,211,200 47400

september

october

november december totals

10800 11960 10800

7600 8000 7600

6000 8000 6000

5600 8000 5600

95400 101120 95400

1160

1560

3560

5960

11680

299 0 0 0

200 0 0 0

200 0 0 0

200 0 0 0

2528 139 0 0

total overtime 0 375 0 0

largest production, larger inventory, and quite expensive smaller production, many overtime, and the most expensive smaller production, no inventory, no overtime, and quite expensive larger production, large inventory, no overtime

e expensive efficiency, but create the largest inventory, and the cost is more expensive most expensive not efficiency because of overtime e, and quite expensive efficiency but still more expensive efficiency, although create a large inventory, but still create the cheapest cost

eapest cost