HW#4 Aggregate Production Planning

Please read the following concerning all homework:

1. When submitting by email, remember to use the naming convention detailed in the syllabus. For online assignments, Word, Excel, or both types of documents can be submitted.

2. Please include a cover sheet with your name and date, that includes online submissions (I use this for making comments and grading).

3. Include section headers such as Introduction, Analysis, & Recommendations within your summary for the problem.

4. Answer the problems as completely as possible. Neatness, accuracy, and overall clarity of work are important. Full credit will only be given for problems, which include the aforementioned items. I am looking for process and methodology not necessarily one correct answer.

5. Submit homework by the due date and time.

Remember: You are telling a "story" in the attempt to win a contract from a client, do your best to tell the story, win the contract, and get paid (or in this case get an excellent grade!)
 

Please submit the following problems:

The same instructions apply for all homework problems. It is vitally important that you do a good job defining the problem, stating assumptions, explaining your analysis, feel free to use graphs, tables, and/or any other means to get your point across. Simply writing an answer down is woefully inadequate (i.e., you will receive no points).

Please submit the following problems:

TAKE NOTE: THERE ARE TWO PARTS TO THIS HOMEWORK - THE PAIRED ASSIGNMENT AND THE INDIVIDUAL ASSIGNMENT, BOTH MUST BE COMPLETED AND SUBMITTED

Paired Assignment

I will be assigning two unique problems to the class. I will pair off students in the class (note, maybe one group has three and if your partner does not respond just send me your work and you will receive credit). One person will do one of the problems and the other person will do the other problem. Each pair of students will then be required to converse via the Discussions section in Canvas and comment on the other persons work. I expect at least four posts for each pair of students (2 per each student=4).

This exercise is to enhance interaction between you and your colleagues as well as foster interaction between the professor and all students. This exercise will be weighted 10% of the Homework #1 grade and those who complete the problems and discussion session will receive full credit for this portion of Homework #1.

CLICK HERE FOR THE PAIRINGS FOR HOMEWORK

Go to the following link:  OSCM Movies and select the movie clip assigned to you (e.g., if you are in the first column you are Problem A so click on any clip labeled HW#4 Problem A and vice versa for Problem B) under the Supply Chain Management section or the Forecasting section or the Capacity and Aggreagate Production Planning section.  There are multiple clips for the section.  However, you only have to chose one (1) clip and complete that one (1) clip. 

To complete the assignment, go into the Discussions section in Canvas, create a thread, and with the classmate you are paired with exchange a greeting. Second step, watch the video clip and complete the Questions for Thought listed by the movie clip (i.e., either Problem A or B) and post your Questions for Thought in the Discussions section in Canvas.  Finally, within the Discussions section in Canvas, comment on your classmate's work (these comments can be very simple and straightforward, such as "looks good" or "nice comments").

You must post to the Discussions section in Canvas to receive full credit for this part of the assignment. I will be monitoring the discussion posts so I will be aware if you cannot get through to your assigned classmate or if the assigned classmate chooses not to respond or participate. Anyone not participating or responding will receive a zero for this portion of the assignment. Those making a "good faith" effort but get no response will receive credit.

Please email me if you do not understand or need assistance.

Individual Assignment

1.    Aggregate Production Planning

Stan has a problem.  He must prepare an aggregate production plan for his boss as soon as possible.  However, he doesn’t know the best way to use his workers or his machines.  He has the following information:

Cost to hire:  $100 per worker
Cost to layoff:  $400 per worker
Total Capacity:  14,000 units per quarter
Inventory costs:  $5 per unit per quarter

Demand schedule:

Q1 – 9,000
Q2 – 10,000
Q3 – 7,500
Q4 – 12,000

Stan cannot subcontract work or let orders go unfilled or pay overtime.  He knows each worker can produce 25 units per quarter and workers must make whole units.  He has 10 workers on staff right now and when hiring he cannot hire partial/fractional workers.  Help Stan develop an Aggregate Production Plan that minimizes overall costs yet meets capacity requirements.  He will retain his work force at the end of the quarter.  Use the following Excel template APP1.XLSX to assist in solving the following:

a.  First try a level strategy.  What are the advantages/disadvantages with this strategy?

b.  Second try a chase strategy.  What are the advantages/disadvantages with this strategy?

c.  Third, try a mixed strategy.  What are the advantages/disadvantages of this strategy?