AGGREGATE PLANNING

Regular time production cost 100 Hours per person per day
Over time production cost 130 Hours to produce one unit =
Production capacity per day
Hiring Cost 500
Lay off cost 400
Inventory Cost 20
Shortage Cost 500
Out sourcing cost 150
Under utilization cost 2

Month Beg Inv Demand RT days OT days Workforce Hiring Layoff RT cap. RT prod
58
January 1000 3000 22 4 60 2 0 2112 2112
February 500 3000 18 4 56 0 4 1612.8 1612.8
March 0 2500 22 5 62 6 0 2182.4 2182.4
April 0 1500 19 4 60 0 2 1824 1500
May 0 2000 23 5 66 6 0 2428.8 2000
June 0 2500 20 4 60 0 6 1920 1920
July 0 3000 22 5 65 5 0 2288 2288
August 0 4000 22 5 64 0 1 2252.8 2252.8
September 0 3000 18 4 60 0 4 1728 1728
October 0 2800 21 5 58 0 2 1948.8 1948.8
November 0 2000 20 4 55 0 3 1760 1760
December 0 1000 22 5 58 3 0 2041.6 1000

30300 249 54 22 22 24099.2

 16
10

OT cap OT prod Outsour Tot Prod End Inv RT Cost OT cost Inv cost Shor cost Hir Cost

384 384 4 2500 500 2.112 0.4992 0.1 0 0.01

358.4 358.4 528.8 2500 0 1.6128 0.46592 0 0 0
496 317.6 0 2500 0 2.1824 0.41288 0 0 0.03
384 0 0 1500 0 1.5 0 0 0 0
528 0 0 2000 0 2 0 0 0 0.03
384 384 196 2500 0 1.92 0.4992 0 0 0
520 520 192 3000 0 2.288 0.676 0 0 0.025
512 512 1235.2 4000 0 2.2528 0.6656 0 0 0
384 384 888 3000 0 1.728 0.4992 0 0 0
464 464 387.2 2800 0 1.9488 0.6032 0 0 0
352 240 0 2000 0 1.76 0.312 0 0 0
464 0 0 1000 0 1 0 0 0 0.015

5230.4 29300 22.3048 4.6332 0.1 0 0.11

Lay cost Outso C UnderU C Total C

0 0.006 0 2.7272
0.016 0.7932 0 2.88792
0 0 0 2.62528
0.008 0 0.0648 1.5728
0 0 0.08576 2.11576
0.024 0.294 0 2.7372
0 0.288 0 3.277
0.004 1.8528 0 4.7752
0.016 1.332 0 3.5752
0.008 0.5808 0 3.1408
0.012 0 0 2.084
0 0 0.20832 1.22332

0.088 5.1468 0.35888 32.74168

 AGGREGATE PLANNING

Regular time production cost 100 Hours/person/day = 16

Over time production cost 130 Hours to produce one unit =
Inventory Cost 20 Number o
Shortage Cost 500

Month Beg Inv Demand RT days OT days RT cap. RT prod OT cap

January 1000 3000 22 4 2288 2288 416

February 704 3000 18 4 1872 1872 416
March -8 2500 22 5 2288 2288 520
April 300 1500 19 4 1976 1976 416
May 1190 2000 23 5 2392 2392 520
June 2102 2500 20 4 2080 2080 416
July 2098 3000 22 5 2288 2288 520
August 1906 4000 22 5 2288 2288 520
September 714 3000 18 4 1872 1872 416
October 2 2800 21 5 2184 2184 520
November -94 2000 20 4 2080 2080 416
December 306 1000 22 5 2288 694 520

30300 249 54 25896 24302 5616

Hours/person/day = 16 16
Hours to produce one unit = 10
of people 65

OT prod Total Cap Total Prod End Inv RT Cost OT cost Inv cost

416 2704 2704 704 2.288 0.5408 0.1408

416 2288 2288 -8 1.872 0.5408 0
520 2808 2808 300 2.288 0.676 0.06
414 2392 2390 1190 1.976 0.5382 0.238
520 2912 2912 2102 2.392 0.676 0.4204
416 2496 2496 2098 2.08 0.5408 0.4196
520 2808 2808 1906 2.288 0.676 0.3812
520 2808 2808 714 2.288 0.676 0.1428
416 2288 2288 2 1.872 0.5408 0.0004
520 2704 2704 -94 2.184 0.676 0
320 2496 2400 306 2.08 0.416 0.0612
0 2808 694 0 0.694 0 0

4998 31512 29300 24.302 6.4974 1.8644

Shor cost Total Cost

0 2.9696
0.04 2.4528
0 3.024
0 2.7522
0 3.4884
0 3.0404
0 3.3452
0 3.1068
0 2.4132
0.47 3.33
0 2.5572
0 0.694

0.51 33.1738