Question

Question 18 1 pts Aggregate Planning The following information will be used for the next 8 problems (18-25). We strongly suggest using Excel to setup the aggregate plan associated with these questions (the Excel template file- 'SCM301_HW2_StuTemplate_Q18_25.xlsx' will be posted on Canvas). A key hospital supplier, IVs Plus (IVP) located in Salina, KS sells IV tubing and stands to hospitals and clinics. Sales have picked up ever since they introduced their newest “Squeaky Clean” IV stand, which eliminates all oils and germs left behind by users. Though IVP sells these stands all year long, they sell the most during the summer months, when end-of-fiscal year purchases are at a peak. The demand over the next 12 months is shown in the table below. Use the demand forecasts and determine the lowest cost production plan. Month Demand Forecast Month Demand Forecast January 133,067 July 251,630 February 155,026 August 249,630 March 168,200 September 200,312 April 173,890 October 160,830 May 202,759 November 145,266 June 260,842 December 128,900

Thank you in advance!

Answer 1

Total demand is 2230352. Out of this we have 340000 units. This means that the net demand is (2230352-340000)/12 = 157529.33 per month. This needs 157529.33/15000 = 10.50 employees per month. This translates to 11 employee workforce throughout the year. This plan will leave some additional inventory at the end of the year. We will assume that the employees will produce at full capacity.

The level plan is shown below

A1 - А 1 Month 2 Demand x в January 133067 fc Month C February 155026 D March 168200 E April 173890 F May 202759 G June 260842 H July 251630 I J K L M August September October November December 249630 200312 160830145266 128900 N Total 2230352 4. Beg Iny 340000 5 Productior 165000 6 End inv 371933 371933 165000 381907 381907 165000 378707 378707 165000 369817 369817 165000 332058 332058 165000 236216 236216 165000 149586 149586 165000 64956 64956 29644 33814 165000 165000165000 2964433814 53548 53548 165000 89648 1980000 2491834 11 11 11 11 11 11 11 11 8 Employee 9 Hired 10 Fired 11 0 0 11 0 0 11 0 0 O 0 0 0 o 0 o 0 0 0 0 0

The answers are

18.

Between 1800000 and 200000

21

Between 20001 and 30000

We hired 4 people. So the hiring cost is 24000

The chase plan is shown below

A1 А 1 Month 2 Demand x в January fc Month C February 155026 D March 168200 E April 173890 F May 202759 G H June July 260842251630 I J K L M August September October November December 249630 200312 160830 145266 128900 N Total 2230352 3 206933 3707 4 Beg Inv 5 Production 6 End inv 340000 0 206933 51907 120000 3707 9817 195000 2058 2058 270000 11216 180000 9817 11216 255000 14586 14586 240000 4956 210000 14644 150000 3814 3814 150000 8548 8548 135000 14648 1905000 346834 51907 O 12 18 17 14 10 10 8 Employee 9 Hired Fired O 0000 13 1 0 16 0 5 O 0 0 1 0 1 16

22

Between 180000 and 2000000

23

Between 100001 and 150000

Hired 18 people. The cost is 18*6000 = 108000

24

Between 100001 and 150000

Fired 16 people. The cost is 16*8000 = 128000