(use the aggregate planning sheet worksheet)

On Dec. 22 the V.P. Finance informs you that the availability of capital will be extremely tight next year. As a consequence, he asks you to develop a radically different type of aggregate plan based on a "Chase" strategy Ending inventory and backorders is to be zero at the end of each quarter. The V.P. Manufacturing says he realizes this type of strategy will require him to abandon his beloved "level" strategy and for you to vary the total output rate from one quarter to another The productivity planning factors for each type of output are repeated here (note that there are some limits in a couple of the categories). Limitations Option Full-Time Employees Overtime (FTE) Subcontract Part-time Workers Productivity 500 units/worker/qtr Up to 200 units/worker/qtr 400 units/worker/qtr Up to 5000 units/qtr Up to 25 workers/qtr Finally, the Personnel Manager informs you that, due to end of the year retirements, only 36 (not 44) full- time employees will be on the payroll as of Jan 2. Using the original demand and beginning inventory information for problem 1, develop a "chase" plan, following the guidelines noted above. Total = AGGREGATE PLANNING WORKSHEET Overall plan Period 1 IIT IV Forecast Output total (Output total)-(Forecast)** Inventory: Beginning Ending Average Backorders: Plan for types of output (must add up to the "Output total line above) Full time hires (layoffs) Full time staf (starting Regular (@ ) Overtime (@ > Temporary hires (layoffs) Temporary staff (starting Temporary (@ ) Sub-contract (@ for these two categories, determine how many people you need versus how many people you have and decide if you need to hire or loyalt, do this for every unter Use of this line is optimal if it helps you feel free to til noreil Costs Output type: Regular (@ $5.00/unit) Overtime (@ $7.50/unit Temporary (@S12.00/unit Sub-contract (@S10.00/unit ) Hiring costs (@ S100/person) Layoff costs @ $500/FT person) Inventory costs @ $4/qtr-avg inv) Backorder costs @ $8/qtr Totals On Dec. 22 the V.P. Finance informs you that the availability of capital will be extremely tight next year. As a consequence, he asks you to develop a radically different type of aggregate plan based on a "Chase" strategy Ending inventory and backorders is to be zero at the end of each quarter. The V.P. Manufacturing says he realizes this type of strategy will require him to abandon his beloved "level" strategy and for you to vary the total output rate from one quarter to another The productivity planning factors for each type of output are repeated here (note that there are some limits in a couple of the categories). Limitations Option Full-Time Employees Overtime (FTE) Subcontract Part-time Workers Productivity 500 units/worker/qtr Up to 200 units/worker/qtr 400 units/worker/qtr Up to 5000 units/qtr Up to 25 workers/qtr Finally, the Personnel Manager informs you that, due to end of the year retirements, only 36 (not 44) full- time employees will be on the payroll as of Jan 2. Using the original demand and beginning inventory information for problem 1, develop a "chase" plan, following the guidelines noted above. Total = AGGREGATE PLANNING WORKSHEET Overall plan Period 1 IIT IV Forecast Output total (Output total)-(Forecast)** Inventory: Beginning Ending Average Backorders: Plan for types of output (must add up to the "Output total line above) Full time hires (layoffs) Full time staf (starting Regular (@ ) Overtime (@ > Temporary hires (layoffs) Temporary staff (starting Temporary (@ ) Sub-contract (@ for these two categories, determine how many people you need versus how many people you have and decide if you need to hire or loyalt, do this for every unter Use of this line is optimal if it helps you feel free to til noreil Costs Output type: Regular (@ $5.00/unit) Overtime (@ $7.50/unit Temporary (@S12.00/unit Sub-contract (@S10.00/unit ) Hiring costs (@ S100/person) Layoff costs @ $500/FT person) Inventory costs @ $4/qtr-avg inv) Backorder costs @ $8/qtr Totals