Prepare an aggregate plan for the coming year assuming that the sales forecast is perfect Use a spreadsheet Bradford Manufacturing in the spreadsheet an area has been designated for your aggregate plan solution. Supply the number of packaging lines to run and the number of overtime for each quarter. You will need to set up the cost calculations in the spreadsheet. You may want to try using Excel Solver to find a solutions remember that your final solution need an interger number of lines and an interger number of overtime hours for each quarters (solutions that requires 8.9134 lines and 1.256 hours of overtime and not feasible.
Information for the case:
1. Currently the plant Is running 10 lines with no overtime. Each line requires six people to run. For planning purposes, the lines are run for 7.5hours each normal shift. Employees, though, are paid for eight hour s’ work. It is possible to run up to two hour s of overtime each day, but it must be scheduled for a week at a time, and all the lines must run overtime when it is scheduled. Workers are paid $20.00/hour during a regular shift and$30.00/hour on overtime. The standard production rate for each line is 450cases/hour .
2. The marketing forecast for demand is as follows:QI-2,000;Q2-2,200;Q3-2,500;Q4-2,650; and Q1 (next year )-2,200.These numbers are in 1,000-case units. Each number represents a 13-week forecast.
3. Management has instructed manufacturing to maintain a two-week supply of pudding inventory in the warehouses. The two-week supply should be based on future expected sales. The following are ending inventory target levels for each quarter :QI-338;Q2-385; Q3-408;Q4-338.
4. Inventory carrying cost is estimated by accounting to be$1.00 per case per year .This means that if a case of pudding is held in inventory for an entire year ,the cost to just carry that case in inventory is $1.00.If a case is carried for only one week, the cost is $1.00/52, or $0.01923 The cost is proportional to the time carried in inventory. There are200,000 cases in inventory at the beginning of Q1(this is 200 cases in the 1,000-case units that the forecast is given in).
5. If a stock out occurs, the item is backordered and shipped at a later date. The cost when a backorder occur s is$2.40 per case due to the loss of goodwill and the high cost of emergency shipping.
6. The human resource group estimates that it costs $5,000 to hire and train a new production employee .It costs $3,000to layoff a production worker
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