20 Production Data Workdays per month Hours per workday Labor standard - labor hours per table On-hand inventory (tables) Current workforce (workers) Overtime hours per worker per month 7.5 2.5 300 La Mesa Abundante (LMA) located just outside of Barcelona, Spain produces kitchen tables that it sells throughout Western Europe. Sales have been increasing steadily over the past several years, due in large part to the free trade among Western European countries that has resulted from the formation of the European Union (EU). 25 Jordi Garolera, the operations management at LMA, is currently developing an aggregate plan for the next six months. In order for him to be able to evaluate alternative plans, Jordi has collected the information on the left. 20 $/table Jordi has just returned from a meeting with the marketing manager, who provided him with a sales forecast for the next six months of 13,260 tables, which is broken down by month at the left. 11 280 Cost Data Hourly wage ($ per hour) Hiring costs ($ per employee) Firing costs ($ per employee) Overtime costs are 1.5 times hours wage Inventory carrying costs ($ per table per month) Stockout costs ($ per table) 1) Develop a pure level aggregate plan for the next 6 months and determine the total cost of the plan. Save on a sheet labeled "LEVEL" 950 2) Develop a pure chase aggregate plan for the next 6 months and determine the total cost of the plan. Save on a sheet labeled "CHASE" 14 3) Which plan (pure level or pure chase) has the lowest cost? Which plan has the lowest SHORTAGE cost? Demand Jan Feb Mar Tables 1740 1740 2460 3240 2220 1860 13260 Apr May Jun 20 7.5 Production Data Workdays per month Hours per workday Labor standard - labor hours per table On-hand inventory (tables) Current workforce (workers) Overtime hours per worker per month 2.5 300 25 How many tables can 25 employees make in a month? 11 280 Cost Data Hourly wage ($ per hour) Hiring costs ($ per employee) Firing costs ($ per employee) Overtime costs are 1.5 times hours wage Inventory carrying costs ($ per table per month) Stockout costs ($ per table) $/table What is regular time labor in $/unit? How much does it cost to increase production by one unit? How much does it cost to decrease production by one unit? What is overtime labor in $/unit? 950 Demand Jan Tables 1740 1740 Feb Mar 2460 3240 Apr May Jun Total 2220 1860 13260 20 Production Data Workdays per month Hours per workday Labor standard - labor hours per table On-hand inventory (tables) Current workforce (workers) Overtime hours per worker per month 7.5 2.5 300 La Mesa Abundante (LMA) located just outside of Barcelona, Spain produces kitchen tables that it sells throughout Western Europe. Sales have been increasing steadily over the past several years, due in large part to the free trade among Western European countries that has resulted from the formation of the European Union (EU). 25 Jordi Garolera, the operations management at LMA, is currently developing an aggregate plan for the next six months. In order for him to be able to evaluate alternative plans, Jordi has collected the information on the left. 20 $/table Jordi has just returned from a meeting with the marketing manager, who provided him with a sales forecast for the next six months of 13,260 tables, which is broken down by month at the left. 11 280 Cost Data Hourly wage ($ per hour) Hiring costs ($ per employee) Firing costs ($ per employee) Overtime costs are 1.5 times hours wage Inventory carrying costs ($ per table per month) Stockout costs ($ per table) 1) Develop a pure level aggregate plan for the next 6 months and determine the total cost of the plan. Save on a sheet labeled "LEVEL" 950 2) Develop a pure chase aggregate plan for the next 6 months and determine the total cost of the plan. Save on a sheet labeled "CHASE" 14 3) Which plan (pure level or pure chase) has the lowest cost? Which plan has the lowest SHORTAGE cost? Demand Jan Feb Mar Tables 1740 1740 2460 3240 2220 1860 13260 Apr May Jun 20 7.5 Production Data Workdays per month Hours per workday Labor standard - labor hours per table On-hand inventory (tables) Current workforce (workers) Overtime hours per worker per month 2.5 300 25 How many tables can 25 employees make in a month? 11 280 Cost Data Hourly wage ($ per hour) Hiring costs ($ per employee) Firing costs ($ per employee) Overtime costs are 1.5 times hours wage Inventory carrying costs ($ per table per month) Stockout costs ($ per table) $/table What is regular time labor in $/unit? How much does it cost to increase production by one unit? How much does it cost to decrease production by one unit? What is overtime labor in $/unit? 950 Demand Jan Tables 1740 1740 Feb Mar 2460 3240 Apr May Jun Total 2220 1860 13260