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home / study / business / operations management / questions and answers / mba inc. assembles lawn mowers and snow blowers . . . Question:
home study business operations management questions and answers mba inc. assembles lawn mowers and snow blowers Question: MBA Inc. assembles lawn mowers and snow blowers fr Bookmark MBA Inc. assembles lawn mowers and snow blowers from subassemblies and component parts provided by reliable vendors. Both products end items utilize the same small engines, many of the same parts and require the same assembly time and employee labor skills. On December the Production Planning Committee of MBA Inc. is due to adopt an aggregate plan for the coming year. The available planning information is as follows: Information: Demand Forecasts Quarter Lawn Mowers Snow Blowers Q I Q II Q III Q IV Quarter I Beginning Inventory: Mowers ; blowers Output and Costs: Regular Time $ per unit Overtime $ per unit Subcontract $ per unit Part Time $ per unit Inventory $ per unit per quarter based on avg. inventory during each quarter Backorders $ per unit per period based on backorders at end of period Hiring $ per employee FullTime or PartTime Layoff $ per employee no cost if PartTime Production Rates: Regular units per FullTime employee per quarter of either unit Overtime up to units per FullTime employee per quarter of either unit Part Time units per Part Time employee per quarter of either unit Production work force: As of the first of the year, the production work force consists of FullTime employees. Additional Assumptions: Part Time employees may not work overtime Assume utilization of FullTime employees on regular time and of Part Time employees at all times ie all such employees on the payroll during a period produce at the rates shown under Production Rates Overtime utilization of FullTime employees can be on an as needed basis subject to the limitation on maximum overtime output shown under Production Rates. The VP of Marketing is not all that happy with the large volume of backorders in your plan from question A She asks that you develop a plan that requires no backorders at any time during the year. The VP of manufacturing says that he will insist that any such plan specify level output each quarter. The VP of Finance states that you no longer need to have a Qtr IV ending inventory of zero but it should be as low as possible. Use the original demand data, beginning inventory, etc. from problem Develop a plan that will meet the requirements of all three VP
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