Problem Statement:

The aim of this case study is to propose a daily capacity level and level of resourcing required for Q2 & Q3 2023. The proposed daily capacity level should achieve the highest level of order fulfilment per quarter. Following the daily capacity level that is set, our operations team will then plan the level of resourcing required for the respective quarters. Do note that the daily capacity should be the most cost effective for the client. You are free to propose any kind of capacity planning strategy (s), as you deem fit. Do also consider the forecast inaccuracies, risk of commitment of the proposed daily capacity level and the split of Full Time & Part Time Employees.

Assumptions:

Resourcing changes, specifically, changes in headcount would require one month lead time.

Daily capacity & level of resourcing committed (Full Time Employees only) should be fixed per quarter.

There are 22 Business Days per Month, 8 Hours per Day.

Overtime (OT) is allowed for both Full Time & Part Time Employees, up to an additional 8 hours a week. Units completed during OT hours will cost both Bollore & the client 50% more.

Each completed unit will cost the client $1.50.

Cost of each Full Time Employee is $3,000 per month; cost of Part Time Employee is $20 per hour.

Dataset:

1. Historical Orders by Week

Year	Week	Order Quantity
2022	41	1,699,754
	42	140,937
	43	-
	44	-
	45	1,311,504
	46	207,557
	47	295,698
	48	114,456
	49	1,013,272
	50	140,800
	51	389,839
	52	-
2023	1	245,181
	2	1,135,403
	3	27,071
	4	413,792
	5	96,083
	6	1,218,112
	7	1,985
	8	1,447,018
	9	-
	10	1,921,370
	11	479,840
	12	-
	13	-
	14	1,760,000
	15	440,000
	16	1,100,000
	17	400,000

2. Forecast Volume

Month	Forecast Volume
October 2022	2,494,082
November 2022	2,449,189
December 2022	2,376,469
January 2023	2,362,196
February 2023	2,282,181
March 2023	2,285,923
April 2023	1,792,039
May 2023	1,916,785
June 2023	2,193,572
July 2023	2,324,540
August 2023	2,413,395
September 2023	2,447,340

3. Productivity Levels

Employees	Productivity (units per hour)
Full Time	140
Part Time	100