a capacity planning assignment 2016 bassam senior modified solution

8/17/2019 A Capacity Planning Assignment 2016 Bassam Senior Modified Solution

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Ain Shams University

Faculty of Engineering

Credit Hours Engineering Program

Senior (MANF)

ndustrial Engineering

S!ring "#$%

Capacity&Aggregate Planning

&uestion $

Chapman Pharmaceutical, a large manufacturer of drugs, has an aggregate demand forecast for liquid

cold medicine.

Month J F M A M J J A S O N D

iters!"###s$

"%# " '( )# "( "( "( *# '# +# "(#

a. f the firm has a capacit- of %# thousand liters per month, sho /- means of a graph the sales le0el, production le0el, and in0entor- le0el o0er the ne1t "& months if the initial in0entor- is "+#,###liters.

/. 2hat is the minimum le0el of production necessar- to maintain a nonnegati0e in0entor-3

c. De0elop a plan hich includes o0ertime for hich in0entor- le0els are held to at least a "##,### literle0el each month.

Solutiona'

Month SalesProduction Beginning Ending

1 180 80 190 902 120 80 90 50

3 75 80 50 55

4 60 80 55 75

5 20 80 75 135

6 15 80 135 200

7 15 80 200 265

8 15 80 265 330

9 30 80 330 380

10 70 80 380 390

11 90 80 390 380

12 150 80 380 310

Capacit- Planning4 Aggregate Planning 5 "4"#


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0

50

100

150

200

250

300

350

400

450

Sales

Production level

Ending inventory

Month

Production

/5 6 sales7 %8#,### 9nits : initial in0entor-7 "+#### 9nits

Minmuim requirment 7

sales

∑ ¿−initialinventory¿¿¿

7 (( unit

840000−190000

12 7 (8."))))) 7 ((

Min le0el of production 7 /- trail and error 7 )& unit

c5

Question 2

;he president of


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, "%##

- "8##


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Capacit- Planning4 Aggregate Planning 5 84"#


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Question 3

Planners for a compan- are a/out to prepare the aggregate plan that ill co0er si1 periods. ;he- ha0e assem/ledthe folloing informationE

Period $ " * + % 1otal

Forecast "## "## ## *## +## "## $-##

Costs

2ut!ut

3egular time 4 5" !er unit

2vertime 4 5 !er unit

Su6contract 45% !er unit

nventory 45$ !er unit !er !eriod on average inventory

0ac7 orders 45+ !er unit !er !eriod

a) Pre!are an aggregate !lan and determine its cost 7no8ing the follo8ing. ;he- no ant to e0aluate a plan that calls for stead- rate of regular time output, mainl- using

in0entor- to a/sor/ the une0en demand /ut alloing some /ac@log. ;he- intend to start ith Hero in0entor- on hand in the first period.

Assume a le0el output rate of *## units per period ith regular time !i.e., "%##4 )7*##$.

;he planned ending in0entor- is Hero.

;here are "( or@ers.

Capacit- Planning4 Aggregate Planning 5 (4"#


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6) Planners ha0e decided to de0elop an alternati0e plan. ;he- ha0e learned that one person is a/out toretire from the compan-. Iather than replace him, the- ould li@e to sta- ith the smaller or@forceand use o0ertime to ma@e up for the lost output.;he reduced regular time output is &%# units per period . ;he ma1imum amount of o0ertime output per period is 8# units.evelo! a !lan and com!are it to the !revious one in (a)

c) De0elop another plan in hich -ou can use temporar- or@ers to fill in during months of high demand.Suppose that it costs an additional "## to hire and train a temporar- or@er, and that a temporar-

or@er can produce at the rate of "( units per period !compared ih units per period for regularor@ers$

Capacit- Planning4 Aggregate Planning 5 )4"#


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Capacit- Planning4 Aggregate Planning 5 '4"#


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Solution of c)

Capacit- Planning4 Aggregate Planning 5 %4"#


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Di0iding the num/er of units needed !"$ /- the output rate of "( per temporar- or@er, -ou find thateight or@er periods are needed !e.g. to or@ers for four months each, four or@ers for to monthseach$. Noting that Periods 8 and ( ha0e the hea0iest demand, tr- using four temporar- or@ers for to monthseach !i.e., Periods 8 and ($. ;he results are summariHed in the folloing planE

Period 1 2 3 4 5 6 Total

Forecast # # *## 8## (## # "%##

2ut!ut

3egular

2vertime

Su6contract

2ut!ut'Forecast

nventory

0eginning

Ending

Average

0ac7ing

&%#555555%#

#%#8##

&%#55555555%#

%#")#"#

&%#555555!$

")#"8#"(##

*8#555555!)#$

"8#%#""##

*8#555555!")#$

%##8#%#

&%#555555%#

####

"%##

#

8)#%#

Costs

2ut!ut

3egular

2vertime

Su6contract

Hire9 Fire

nventory

0ac7orders

()#55555555 # 8# #

()#55555555#"#

()#55555555#"(##

)%#55555555558##8#8##

)%#555555558##8#8##

()#5555555555###

*)##

%## 8)# 8##

1otal 5 %## %-# ,$# $$:# $+"# +%# 5+"%#

Question 4

A manager is attempting to put together an aggregate plan for the coming -ear. She has o/tained a forecast ofe1pected demand for the planning horiHon. ;he plan must deal ith highl- seasonal demand: demand isrelati0el- high in periods * and 8 and again in period %, as can /e seen from the folloing forecastsE

Period $ " * + % , - : 1otal

Forecas

t

$:# "# "%# "-# "$# $,# $%# "%# $-# $;:*#

;he department no has full5time people, each of hom can produce"# units of output per period ata cost of ) per unit. n0entor- carr-ing cost is ( per unit per period, and /ac@log cost is "# per unit per period. ;he manager is considering a plan that ould in0ol0e hiring to people to start or@ing in period ", one on a temporar- /asis ho ould or@ onl- through period (. ;his ould cost (## inaddition to unit production costs.a$ 2hat is the rationale for this plan3 /$ Determine the total cost of the plan, including production, in0entor-, and /ac@order costs.

Capacit- Planning4 Aggregate Planning 5 +4"#


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Solution

Capacit- Planning4 Aggregate Planning 5 "#4"#

a capacity planning assignment 2016 bassam senior modified solution

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