QUESTION ONE
A manager is attempting to put together an aggregate plan for the coming nine
months. She has obtained a forecast of expected demand for the planning horizon.
in
The
hghily
plan
must
deal
with
seasonal
demand;
demand
is
relatvely
high
penods 3 and 4 and again n penod 8, as can be seen from the following forecasts:
Month 1|2 3 4 5 6 7 8 9
Forecast190 220 | 240 270 230 1170 | 160 260 | 170|
sl
p
The department now has 20 full-time employees, each of whom produces 10 units of
at a
K8
unit.
for
1 is 50
per
output
period cost of per
Beginning inventory period
inventory carying cost is K per unit per penrod, and backiog cost is K10 per unt per
penod. Using production, inventory and backorder costs, determine the total cost of
the plan.
20marks]
QUESTION THREE
wants you
committee
veriety of furniture products. The planning
information.
ste months using the following
to prepare an aggregate plan for the next
ZAMCHIN, td., produces
a
Month
6
3
2
Demand
160
150 160
Regular Capacity
150
150
Overtime
10
10
150
180
170
140
150
160
160
10
100
10
Cost per unit
Regular time
KS0
Overtime
K7S
Subcontract
KBO
Inventory holding. per month K4
inventoy is zero.
Subcontracting can handle a maximum of 10 units per month. Beginning
orders are allowed. Regular capacity
a plan that minimizes total cost. No back
Develop
Regutar production.
[20 marks]
b) A
company manutacturees wo products Aand 8. Each ot
D
one
D. Each
product
B
requires two
requires
one
inventory records
s
and oneE. Whle
Lead Time
Scheduled
Receipts
Beghnin
Inventony
The
Jec
TEM
CATEGORY
Ruie
requires twO C'S and
each E requires one
F. Each
D and wo Es. The table below shows data from
DATA
Lot-Szing
A
Fxed Order
Quantity=220
3weeksS
280 (week 1)|
inventory record
Lot-for-Lot
weeks
none
xed Order
Penod Order
3 weexS
2 weeKS
300 (week 3)
none
QuantityE300| Quantity (P=2)
150
600
calls for 85 units of A to be
started in week 3 and 100
units to be
week
5.
The
MPS for product B calls 180 units to be
in
n week 5 Develop the net material
weeks for itens C, D and E
plan for the next
started
started
requirement
sir
(15 Marks)
Total: 25 marks