Concept explainers
a.
To determine:
Aggregate measure of production and difficulty for planning the size of faculty in a university.
Introduction:
Aggregate capacity planning is a process in which resources and inventory of future demand is determined. It helps in maintaining overall quality and features of product. It leads to effective management and cost efficiency of product.
a.
Explanation of Solution
Planning for the size of the faculty in a university
To increase the size of the faculty, various constraints will be taken care. Constraints can be cost, salary, revenue, expenditure of recruitment, Human Resource Management etc. These constraints needs to be assessed before increasing the size of faculty.
A major problem in applying aggregate planning for expansion of faculty in a university is resource allocation. Every university has limited resources at their disposal. A university can gather its resources from tuition fee, gifts in form of cash or kind, research grants etc. Expenditure includes salaries of faculty, building maintenance, capital goods etc. In a university, there are various departments and sub-departments. These departments get their share of budget and resource are allocated accordingly.
For example, school would allocate funds to the individual departments and the department would allocate funds to the faculty and staff in the department.
b.
To determine:
Aggregate measure of production and difficulty in determining workforce requirements for a travel agency.
Introduction:
Aggregate capacity planning is a process in which resources and inventory of future demand is determined. It helps in maintaining overall quality and features of product. It leads to effective management and cost efficiency of product.
b.
Explanation of Solution
Retaining workforce in a firm is a big challenge for companies and they are striving hard to discover new Human resource strategies and workforce requirements for a travel agency. Some of them are listed below:
Incentives: Travel agencies should consider revising monetary incentives for employees. The purpose is to encourage and retain employees for a longer period.
Improving communication between the lower and middle level managers: Employees should come forward and clarify their concern regarding their respective job responsibilities and maintain clear communication among them. It therefore eliminates any form of ambiguity between the employees.
Training: A travel agency must have trained people as drivers. So, in order to employ, training must be given and a driving test is a prerequisite. It helps the employees to be updated with industry specific knowledge.
These are some of the elements that the firm aggregates in total in determining the workforce requirements for a travel agency.
The difficulties in applying aggregate planning are explained below:
Companies often lag in identifying the needs of the employees and ends up observing a large employee turnover. Besides that, a travel agency often pays small remunerations and sets huge targets for their employees to achieve company goals. It harms the reputation of the firm adversely.
Also, there is a huge communication gap between the management and the staff that dissuades employees to clarify their concerns.
c.
To determine:
Aggregate measure of production and difficulty in planning workforce and production levels in a fish - processing plant.
Introduction:
Aggregate capacity planning is a process in which resources and inventory of future demand is determined. It helps in maintaining overall quality and features of product. It leads to effective management and cost efficiency of product.
c.
Explanation of Solution
Aggregate measure of production and difficulty in planning workforce and production levels in a fish processing plant that produces canned sardines, kippers and smoked oysters.
Aggregate capacity planning is a process in which resources and inventory of future demand is determined. It helps in maintaining overall quality and features of product. It leads to effective management and cost efficiency of product.
The following is a list of aggregate measures that can be considered for planning workforce and production levels in a fish processing plant.
Number of fishes: The planning and production department needs to ensure that they have sufficient units of fish to be sold to large groups of customers. Besides that, the respective department needs to search for suitable vendors that would supply the fish to the manufacturers and the distributors.
Markets: Another major point is to search for relevant market such as suitable locations or regions. The firm needs to ensure where to sell products and from where they can earn maximum revenues or find suitable market segments.
Number of skilled workers: Skilled and trained workforce is a major challenge for firms to start up new projects or in this case, production levels in a fish processing plant.
The difficulties in applying aggregate planning are explained below:
Transportation issues: It is often seen that due to climatic conditions or vehicular accident, the units of fish are damaged in transit. It affects the company’s earning and business in a huge way.
Waste disposal centers: The production department often faces difficulties in locating waste disposal centers due to which it gives rise to health issues.
Improper production planning: At time, firms are unable to
Hence, if aggregate measures such as transportation, waste disposal centers, production planning, markets, target audience are not properly considered, it leads to disaggregation of planning.
Want to see more full solutions like this?
Chapter 3 Solutions
Production and Operations Analysis, Seventh Edition
- The forecasted demand for fudge for the next four months is 110, 140, 230, and 160 pounds. What is the recommended production rate if a level strategy is adopted with no backorders or stockouts? What is the ending inventory for month 4 under this plan? Round your answers to the nearest whole number. Production rate: pounds/month Ending inventory (month 4): pounds What is the level production rate with no ending inventory in month 4? Round your answer to one decimal place. Production rate: pounds/montharrow_forwardMr. Zulhakim being assigned by his manager to develop their production planning for Year 2022. Table 3 shows the information that he able to obtain from the sales & marketing department. After doing the planning, Mr Zulhakim need to present it to his manager. Factory developed a demand forecast based on Table 3 with supplier charges about RM300.00 per unit. The demand forecast is stated as week but, in this planning, it is being considered as an annual quantity for the operation. Ordering cost is RM150.00. Annual holding cost is 10 percent of a purchased price. (b) Develop the ATP of this plan. Initial inventory on hand is 50 units obtained from Year 2021. Lot size for MPS can be obtained by using EOQ model. Table 3: Demand and Customer confirmed order quantity 8 9 10 2 3 10 40 10 00 30 20 40 20 30 Period (Week) 1 4 5 6 7 Forecast (units) Customer orders (booked) (unit) 20 8. 2arrow_forwardThe company Customer First A-to-Z uses a make to stock strategy. Product A is thecompany’s main product. The forecast for Product A, the accepted customer ordersand the master production schedule is shown below. The company presently has150 units on hand and a fixed master production schedule quantity of 80 units isused. Product A Forecast Customer Orders MPS Week Quantity Week Quantity Week Quantity 1 60 1 45 1 2 60 2 66 2 80 3 60 3 55 3 4 60 4 65 4 5 60 5 40 5 6 60 6 22 6 7 60 7 10 7 8 60 8 5 8 9 60 9 4 9 10 60 10 2 10 Required:A. Help the master production scheduler to fill in the master schedule calculationtable shown below, by using the forecast, the customer orders and the plannedproduction of product A. 1 2 3 4 5 6 7 8 9 10 Ft Dt EIt-1 Pt EIt ATPt B. The marketing department has accepted an…arrow_forward
- In this problem we have a company's aggregate production planning activities: Quarter Demand Forecast 1 41,500 2 45,000 3 25,000 4 62,500 Beginning Workforce = 87 workers Production per Employee = 500 units per quarter Hiring Cost = $850 per worker Firing Cost = $1,600 per worker Inventory Carrying Cost = $8 per unit per quarter Regular Production cost = $ 4 per unit If a Level Production strategy is used, the annual inventory cost is: 14000 69000 168000 O 172000arrow_forwardZhu Manufacturing is considering the Introduction of a family of new products. Long-term demand for the product group is somewhat predictable, so the manufacturer must be concemed with the risk of choosing a process that is inappropriate. Faye Zhu is VP of operations. She can choose among batch manufacturing or custom manufacturing, or she can invest in group technology, Zhu won't be able to forecast demand accurately until after she makes the process choice. Demand will be classified into four compartments: poor, fair, good, and excellebt The table below indicates the payoffs (profits) associated with each processidemand combination, as well as the probabilities of each long-term demand level: Demand Poor Fair Good Excellent Probability Batch Custom 0.15 0.40 -$300,000 $100,000 $1,200,000 $800,000 $400,000 $00,000 0.30 $1,200,000 $750,000 $500,000 0.15 $1,300,000 $800,000 $2,200,000 Group technology a) The alternative that provides Zhu the greatest expected monetary value (EMV) is…arrow_forwardRochor & Co has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units. Sales totalled 16,000 units in March. The March finished goods inventory was 4,000 units. End-of- month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales. How many units would be produced in April? Group of answer choices 20,000 units 20,800 units 5,600 units 4,800 unitsarrow_forward
- Kpogas produces chairs and tables. Using economic forecast for the next month, Kpogas’ marketing manager has judged that during that period, it will be possible to sell as many chairs or tables as the company can produce. Management must now recommend a production target for next month. That is, how many chairs and tables should be produced if Kpogas’ management wishes to maximize next month’s profit contribution? Making this decision requires a consideration of the following key factors: ● Kpogas’s unit contribution margin is GH¢ 5,000 on each chair that is sold and GH¢ 4,000 on each table that is sold. ● Each product is put through Kpogas’s machining operations in both department A and department B. For next month’s production, the two departments have 150 and 160 hours available time, respectively. Each chair produced uses 10 hours of machining in department A and 20 hours of machining in department B, whereas each table produced uses 15 hours of machining in department A and 10…arrow_forwardThe following information relates to the performance of a manager in 2020. Benchmark weight Return on the benchmark Actual returnActual Weight Equity Bonds Cash 7.28% 0.6 0.5 6.00% 3.20% 0.90% 3.60% 0.90% 0.2 0.3 0.2 0.2 Details of investments in different sectors of the equity market are as follows: Sector Beginning of month weights S&P 500 Sector return Basic material 1.96 6.30 6.9 Business services 5.80 7.10 7.0 Capital goods 1.91 8.80 4.1 Consumer cyclical 8.47 12.50 8.8 Consumer non-cyclical 40.37 19.40 10.0 Credit sensitive 24.01 20.80 5.0 Energy Technology 13.53 13.20 2.6 3.95 11.90 0.6arrow_forwardThe Bango Toy Company produces several types of toys to seasonal demand. The forecast for the next six months in thousands of dollarsis given below:July Aug. Sept. Oct. Nov. Dec.Forecast $1000 $1500 $2000 $1800 $1500 $1000A regular employee can produce $10,000 worth of toys per month, and the company has 80 regular employees excel at the end of June. Regular-time employees are paid $3800 per month, including benefits. An employee on overtime produces at the same rate as on regular time but is paid at 150 percent of the regular pay. Up to 20 percent overtime can be used in any one month. A worker can be hired for $1000, and it costs $2000 to lay off an employee. Inventory carrying costs are 30 percentper year. The company wishes to end the year with 80 employees. Beginning inventory of toys is $900,000.a. Calculate the cost of a chase strategy.b. Calculate the cost of a level strategy.c. Using the Excel template, simulate several other strategies.d. Determine the effect on the chase…arrow_forward
- 7-3. Nowjuice, Inc., produces Shakewell fruit juice. A planner has developed an aggregate forecast for demand (in cases) for the next eight months. month Apr forecast 4500 May 4400 Jun 6200 Jul 6400 Aug 5800 Sep 6600 Oct 7200 Nov 6900 Use the following information to develop aggregate plans. Regular production cost: $10.00 per case Regular production capacity: 5,000 cases Overtime production cost: $16 per case Subcontracting cost: $20 per case Holding cost: $1 per case per month Beginning inventory: 0 Develop an aggregate plan using each of the following guidelines and compute the total cost for each plan. Which plan has the lowest total cost? (a) Use level production of 5,000 case per month. Supplement using overtime as needed (b) Use a combination of overtime (500 cases per month for the first five months), inventory, and subcontracting (500 cases per month from September to November, if necessary) to handle variations in demand. Note that suitable amounts of overtime for the last…arrow_forwardPrepare a Master Production Schedule (MPS) for an Agri-Chemical company given the following information: The forecast for each week of an eightweek schedule is 50 units. The MPS rule is to schedule production if the projected on-hand inventory would be negative without it. Customer orders (committed) are as follows:Week Customer Orders1 522 353 204 12Use a production lot size of 75 units and no beginning inventory.arrow_forwardThe forecast demand for fudge for the next four months is 120, 160, 20, and 60 pounds. a. What is the recommended production rate if a level strategy is adopted with no backorders or stock outs? b. What is the ending inventory for Month 4 under this plan? c. What is the level production rate with no ending inventory in month 4.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.