Aggregate Planning and Sales and Operation Planning - Management Assignment Help

Assignment Task:

Task:

Answer questions from the text book.
Chapter 13: Aggregate Planning and Sales and Operation Planning
Chapter 14: Material Requirement Planning
Chapter 15: Short Term Scheduling

Q:1
Refer to Examples 1 to 4 and Solved Problem 13.1
a) Develop another plan for the Mexican roofing manufacturer. For this plan, plan 5, the firm wants to maintain a constant workforce of six, using subcontracting to meet remaining demand. Is this plan preferable?
b) The same roofing manufacturer has yet a sixth plan. A constant workforce of seven is selected, with the remainder of demand filled by subcontracting.
c) Is this better than plans 1–5?

Q:2
A large Saskatchewan feed mill, B. Swart Processing, prepares its six-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1000 bags; February, 1200; March, 1250; April, 1450; May, 1400; and June, 1400. The feed mill plans to begin the new year with no inventory left over from the previous year, and backorders are not permit-ted. It projects that capacity (during regular hours) for producing bags of feed will remain constant at 800 until the end of April, and then increase to 1100 bags per month when a planned expansion is completed on May

1. Overtime capacity is set at 300 bags per month until the expansion, at which time it will increase to 400 bags per month. A friendly competitor in Alberta is also available as a backup source to meet demand—but can provide only 500 bags total during the six-month period. Develop a six-month production plan for the feed mill using the transportation method. Cost data are as follows:
Regular-time cost per bag (until April 30) $12.00
Regular-time cost per bag (after May 1) $11.00
Overtime cost per bag (during entire period) $16.00
Cost of outside purchase per bag $18.50
Carrying cost per bag per month $ 1.00

Q:3
WestJet’s daily flight from Edmonton to Toronto uses a Boeing 737, with all-coach seating for 120 people. In the past, the airline has priced every seat at $140 for the one-way flight. An average of 80 passengers are on each flight. The variable cost of a filled seat is $25. Katie Morgan, the new operations manager, has decided to try a yield-revenue approach, with seats priced at $80 for early bookings and at $190 for bookings within one week of the flight. She estimates that the airline will

2

sell 65 seats at the lower price and 35 at the higher price. Variable cost will not change. Which approach is preferable to Ms. Morgan ?

Q:4
Using the information in Problem 14.3, construct a net material requirements plan using the following on-hand inventory.
ITEM On-Hand Inventory Item Inventory On Hand
S 20 W 30
T 20 X 25
U 40 Y 240
Y 30 Z 40

Q:5
Develop a lot-for-lot solution and calculate total relevant costs for the data in the table for Problems 14.17 through 14.19.
Data Table for Problems 14.17 through 14.19*
period 1 2 3 4 5 6 7 8 9 10 11 12
Gross requirement

30 40 30 70 20 10 80 50

*Holding cost 5 $2.50/unit/week; setup cost 5 $150; lead time 5 1 week; beginning inventory 5 40.

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