OM 5.3

This bakery had six workers in 1994,today it employs 105 people

5.3 Crispe Cookies has indicated that they might be able to convince one worker to return. Additionally, they are willing to consider using subcontracting to make up the rest of the loss in production capacity. However, they are unsure of the impact this will have on the total costs of the operation. You are required to prepare an aggregate plan using subcontracting to recoup the production loss of one worker during periods 3, 4 and 5. Backlogs are still permitted. (16) Period 1 3 4 5 Total / Totaal 96000 Forecast 14350 14850 15650 16650 18150 16350 Output Regular Overtime Subcontract Output - forecast Inventory Beginning Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 5.4 Indicate which plan Crispe Cookies should implement and motivate your answer by including the negative aspects of the other plans. (2) Question 5 [47] In order to forecast the demand for Crispe Cookies famous chocolate and vanilla cakes for the next 6 months of 2022, Crispe Cookies would like to prepare an aggregate plan for the next six periods. Crispe Cookies employees are capable of producing 150 famous cakes a month. Manufacturing of these famous cakes will incur the following costs: Regular time = R 30.00 per cake produced Overtime = R 40.00 per cake produced Subcontracting = R 60.00 per cake produced Inventory = R 15.00 per cake per period based on average inventory Back-order R 45.00 per cake per period . 5.1 Using the information above, prepare a level output aggregate plan. Any discrepancy will only be covered with backlogs and back orders. (13) Total / Period 1 2 3 4 5 6 Totaal Forecast 14250 14750 15750 16750 18250 14750 94500 Output Regular Overtime Subcontract Output - forecast Inventory Beginning / Begin Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 5.2 Two of Crispe Cookies employees have resigned. Crispe Cookies management decides that they will not employ someone in those people's place yet as they will consider employing people when the demand increase for the Christmas festive season. They will rather make up the difference in output through overtime. The use of backlogs has proved to be successful in the past and are permitted in this plan as well. The company will recoup the total lost production by working overtime in these periods, which amounts to 1800 cakes in total. To accommodate this difference, the business will use overtime in periods 3,4 and 5 as these periods represent the months of August, September and October. (16) Total / Period 1 2 3 4 5 6 Totaal 97500 Forecast 16450 15950 15550 16550 18050 14950 Output Regular Overtime Subcontract Output forecast Inventory Beginning Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 5.3 Crispe Cookies has indicated that they might be able to convince one worker to return. Additionally, they are willing to consider using subcontracting to make up the rest of the loss in production capacity. However, they are unsure of the impact this will have on the total costs of the operation. You are required to prepare an aggregate plan using subcontracting to recoup the production loss of one worker during periods 3, 4 and 5. Backlogs are still permitted. (16) Total / Period 1 2 3 4 5 6 Totaal Forecast 14350 14850 15650 16650 18150 16350 96000 Output Regular Overtime Subcontract Output - forecast Inventory Beginning Ending Average Backlog Costs 5.3 Crispe Cookies has indicated that they might be able to convince one worker to return. Additionally, they are willing to consider using subcontracting to make up the rest of the loss in production capacity. However, they are unsure of the impact this will have on the total costs of the operation. You are required to prepare an aggregate plan using subcontracting to recoup the production loss of one worker during periods 3, 4 and 5. Backlogs are still permitted. (16) Period 1 3 4 5 Total / Totaal 96000 Forecast 14350 14850 15650 16650 18150 16350 Output Regular Overtime Subcontract Output - forecast Inventory Beginning Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 5.4 Indicate which plan Crispe Cookies should implement and motivate your answer by including the negative aspects of the other plans. (2) Question 5 [47] In order to forecast the demand for Crispe Cookies famous chocolate and vanilla cakes for the next 6 months of 2022, Crispe Cookies would like to prepare an aggregate plan for the next six periods. Crispe Cookies employees are capable of producing 150 famous cakes a month. Manufacturing of these famous cakes will incur the following costs: Regular time = R 30.00 per cake produced Overtime = R 40.00 per cake produced Subcontracting = R 60.00 per cake produced Inventory = R 15.00 per cake per period based on average inventory Back-order R 45.00 per cake per period . 5.1 Using the information above, prepare a level output aggregate plan. Any discrepancy will only be covered with backlogs and back orders. (13) Total / Period 1 2 3 4 5 6 Totaal Forecast 14250 14750 15750 16750 18250 14750 94500 Output Regular Overtime Subcontract Output - forecast Inventory Beginning / Begin Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 5.2 Two of Crispe Cookies employees have resigned. Crispe Cookies management decides that they will not employ someone in those people's place yet as they will consider employing people when the demand increase for the Christmas festive season. They will rather make up the difference in output through overtime. The use of backlogs has proved to be successful in the past and are permitted in this plan as well. The company will recoup the total lost production by working overtime in these periods, which amounts to 1800 cakes in total. To accommodate this difference, the business will use overtime in periods 3,4 and 5 as these periods represent the months of August, September and October. (16) Total / Period 1 2 3 4 5 6 Totaal 97500 Forecast 16450 15950 15550 16550 18050 14950 Output Regular Overtime Subcontract Output forecast Inventory Beginning Ending Average Backlog Costs Regular Overtime Subcontract Inventory Back-order Total 5.3 Crispe Cookies has indicated that they might be able to convince one worker to return. Additionally, they are willing to consider using subcontracting to make up the rest of the loss in production capacity. However, they are unsure of the impact this will have on the total costs of the operation. You are required to prepare an aggregate plan using subcontracting to recoup the production loss of one worker during periods 3, 4 and 5. Backlogs are still permitted. (16) Total / Period 1 2 3 4 5 6 Totaal Forecast 14350 14850 15650 16650 18150 16350 96000 Output Regular Overtime Subcontract Output - forecast Inventory Beginning Ending Average Backlog Costs