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180

CHAPTER 13A G G R E G AT E P L A N N I N G

C H A P T E R

Aggregate Planning

DISCUSSION QUESTIONS
1.Aggregate planning is concerned with the quantity and
timing of production for the intermediate future; typically
encompassesatimehorizonofthreetoeighteenmonths.
2.Aggregate means combining the appropriate products and
resourcesintogeneral,oroverall,terms.
3.Strategicobjectives:minimizecostovertheplanningperiod,
smoothfluctuationsinworkforce,drivedowninventorylevelsfor
timesensitivestock,andmeetahighlevelofserviceregardlessof
cost.Costminimizationisthemostoftentreatedquantitatively
andisgenerallythemostimportant.
4.Withachasestrategyproductionratesorworkforcelevelsare
adjustedtomatchdemandrequirementsovertheplanninghorizon.
5.A pure strategy is one that varies only one factorfor
example, maintain a constant work force level or maintain a
constantinventory.Tradeoffsareignored.
6.Levelschedulingisanaggregateplaninwhichdailycapaci
tiesareuniformfrommonthtomonth.Theunderlyingphilosophy
isthatstableemploymentleadstobetterquality,lessturnover,
lessabsenteeism,andmoreemployeecommitment.
7.Mixedstrategyisaplanningapproachinwhichtwoormore
options,suchasovertime,subcontracting,hiringandlayoff,etc.,
areused.Therearebothinventorychangesandworkforceandpro
ductionratechangesovertheplanninghorizon.Typically,mixed
strategiesarebetter(resultinlowercosts)thanpurestrategies.
8.Theadvantageofvaryingthesizeoftheworkforceasre
quiredtoadjustproductioncapacityisthatonehasafundamental
ability to change production capacity in relatively small and
preciseincrements.Thedisadvantagesarethatareadysupplyof
skilledlaborisnotalwaysavailable,newlyhiredpersonnelmust
betrained,andlayoffsunderminethemoraleofallemployeesand
canleadtoawidespreaddecreaseinoverallproductivity.
9.Mathematicalmodelsarenotmorewidelyusedbecausethey
tendtoberelativelycomplexandareseldomunderstoodbythose
personsperformingtheaggregateplanningactivities.
10.Aggregate planning in services differs from aggregate
planninginmanufacturinginthefollowingways:
Most services are perishable and cannot be inventoried.
Itisvirtuallyimpossibletoproducetheserviceearlyin
anticipationofhigherdemandatalatertime.
Demandforservicesisoftendifficulttopredict.Demand
variationsmaybemoresevereandmorefrequent.

Services are more customized than manufactured goods


and can be offered in many different forms. This
variabilitymakesitdifficulttoallocatecapacity.Unitsof
capacitymayalsobehardtodefine.
Because most services cannot be transported, service
capacitymustbeavailableattheappropriateplaceaswell
asattheappropriatetime.
Servicecapacityisgenerallyalteredbychangesinlabor,
ratherthanbyequipmentorspace,andlaborisahighly
flexibleresource.

11.The master production schedule (MPS) is produced by


disaggregatingtheaggregateplan.
12.Graphicalaggregateplanningmethods,whilebasedontrial
and error, are useful because they require only limited
computationsandusuallyleadtooptimalsolutions.
13.Limitationsofthetransportationmethodincludethatitdoes
notworkwellwhenoneattemptstoincludetheeffectofhiring
andlayoffsinthemodel.
14.Yield management adds another set of decisions to the
aggregateplan,tocapacityplanning,andtoscheduling.However,
oftheseyieldmanagementissues,theaggregateplanmaybethe
oneleastaffected.Autorentalcompanies,airlines,andhotelsnow
all vary inventory (autos, seats, rooms) and prices to reflect
waystomaximizetheiryield(profit).Leadtime(vacationersprice
shopmoreandarewillingtodosoearlier),daysoftheweek,
seasons,holidays,andconventionsallimpacttheyield.Inmany
cases,theaggregatesupplyistheleastaffected.

ETHICAL DILEMMA
1. From the airlines point of view, revenue (yield)
managementiscrucial.Moreover,manyfirms,includ
inghotels,restaurants,anduniversitiespracticerevenue
management.Agoodclassdiscussioncanbegenerated
byaskingstudentstodiscusshowotherorganizations
practiceyieldmanagementwithoutallofthepublicity
(oftenadversepublicity)thatairlinesreceive.
Hotels have various approaches, from weekend
specials,topoints,tocomputerizedpricingtoadjust
todailyvolumechanges.
Restaurantshavecoupons,earlybirdspecials,and
specialpricesonslownights.Hugeportionsofrestaurant
customershavesomesortofdiscount.Theauthorshave
seenonefigurethatashighas30percentofrestaurant
customers use coupons (the figure varies substantially
dependingonthetypeofrestaurantincluded.).

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181

CHAPTER 13A G G R E G AT E P L A N N I N G

Universitieshavesomanygrants,scholarships,and
loansthatinmanyuniversitiesmostofthestudentshave
somesortofdeal;thisisrevenuemanagementforthe
university.
Theseyieldmanagementtechniquesaredesignedto
appealtovariousmarketsegments.Andthepervasive
nessofthetechniquesprovesthatitdoeswork.
From the customers perspective there is often
resentmentatsittingnexttosomeoneontheairplane
whohaspaidhalfasmuchforthesameflightasyou
paidorgoingtoarestaurantandhavingthecustomer
whoarrived15minutesearlierthanyouorwhohasa
coupon,payhalfthepriceforthesamemeal.Asenseof
fairness suggests that something is wrong and some
customersresentthedifference.
2. Mostcustomershavecometoacceptyieldmanagement
andtakefulladvantageoftheopportunitiesitaffords.
Themultiplepricingofyieldmanagementbydefinition
satisfies more customers (customers use the services)
andthefirmutilizesresourcesmoreeffectively.
3. Manycustomersdotakeexceptiontothevariationin
pricingdifferent prices for the same service seem
inherentlywrongtomanypeopleandmanagementneed
tobepreparedfortheiratecustomer.
4. Somecustomerswillmanipulatethesystembybooking
ticketsonflightsthathaveastopoverinacitythey
travelto,butwhichhasahigherfarethanthedestination
flight.Theyexittheplaneatthestopovercitysaving
money. For instance, if the flight from New York to
Chicagoislessthantheflighttothestopovercitysay
Pittsburgh,acustomercanbooktheflighttoChicago
but get off in Pittsburgh. You might ask students to
discusstheethicsofthismanipulation.
And, of course, customers use the system by
finding the positions on the yield management curve
thatworksforthem.Sometimesthismeansshoppingfor
ticketsweeksinadvanceandtakingtheriskofachange

inplans,orgoingtotherestaurantearly,orfinding
andusingthosediscountcoupons.Howmuchworkdo
youwanttodoforadiscount?Itturnsoutthatsome
peoplewillnotdotheworknecessarytousethesystem
totheiradvantage.

ACTIVE MODEL EXERCISE


ACTIVEMODEL13.1:AggregatePlanning
1.Each worker makes five units per day. If the number of
workersisreducedfrom10to9,droppingthedailycapacity,what
happenstothecost?
Thecostactuallydropsto$54,465.Thisisduetodropsin
theamountofinventorythatismaintained.
2.Whatregulartimelevelminimizesthetotalcost?
39units
3.Howlowcantheregulardailycapacitygetbeforeovertime
willberequired?
At22unitsperday(4.4workers),overtimeisrequired.
4.Howlowcantheregulardailycapacitygetbeforetherewill
notbeenoughcapacitytomeetthedemand?
At12unitsperday(2.4workers),demandcannotbemet.

END-OF-CHAPTER PROBLEMS
13.1

Production
Month
Days
Jan
Feb
Mar
Apr
May
Jun
July
Aug
Sep
Oct
Nov
Dec

22
18
22
21
22
21
21
22
21
22
20
20
252

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Forecast
Demand
1,000
1,100
1,200
1,300
1,350
1,350
1,300
1,200
1,100
1,100
1,050
900
13,950

Needed
Production
Each Day
45.5
61.1
54.5
61.9
61.4
64.3
61.9
54.5
52.4
50.0
52.5
45.0
55.4
(on average)

CHAPTER 13A G G R E G AT E P L A N N I N G

13.2(a)Plan5
Month
Jan
Feb
Mar
Apr
May
Jun

Expected
Demand

Production
Days

900
700
800
1,200
1,500
1,100
6,20
0

Productionrate/day = Persons

Demand
Per Day

22
18
21
21
22
20
124

Mont
h

41
39
38
57
68
55

Jan
Feb
Mar
Apr
May
Jun

6,200
124
=50units/day
Constantworkforce of6 persons;subcontract tomeet
extrademand:Subcontractcost=$20/unit

Jan
Feb
Mar
Apr
May
Jun

900
700
800
1,200
1,500
1,100

770
630
735
735
770
700

1.6

Subcontract

35 units /day
130
70
65
465
730
400
1,86
0

Subcontracting:
C SC 1,860units $20 $37,200
Totalcost:
CT 69,440 37,200= $106,640
Plan2isstillpreferable,butPlan6haslowercostthanPlan5.

Production
(@ 30/day) Subcontrac
t
660
540
630
630
660
600

900
700
800
1,200
1,500
1,100

Hours /day
Hours /unit

C R 7 persons $80 124 $69,440

Hours/day
Productionrate/day Persons
Hours/unit
8
6
30units/day
1.6
Month

Production
(@ 35/day)
8

Plan6Costanalysis:
Regularproduction:

Averagedailyproductionrequirement

Expected
Demand

Expected
Demand

182

240
160
170
570
840
500
2,48
0

Comparing:
Plan 1 Plan 2 Plan 3 Plan 4 Plan 5 Plan 6
Carrying
cost
Reg. time
Overtime
Subcont.
Hire
Layof
Total cost

9,250
0
0
400
0
0
99,200 75,392 99,200 79,360 59,520 69,440
0
0
0 33,728 49,600
0
0 29,870
0
0
0 37,200
0
0 9,000
0
0
0
0
0 9,600
0
0
0
108,45 105,15 117,800 113,48 109,12 106,64
0
2
8
0
0

Totalcost:

Basedsimplyupontotalcost,Plan2ispreferable.Fromapracti
calviewpoint,Plans1,5,and6willlikelyhaveequivalentcosts.
PracticalimplementationofPlan2may,forexample,requirethe
employmentofeightfulltimeemployees,ratherthansevenfull
time and one parttime employee. When several plans have
roughlyequivalentcosts,otherparametersgainimportancesuch
astheamountofcontrolonewouldhaveoverproductionandex
cesswearonequipmentandpersonnel.Plan3shouldbeavoided.

CT $59,520 $49,600 $109,120 (notpreferable


toPlan2at$105,152,butpreferabletoPlan4at$113,488).

13.3

Plan5Costanalysis:
Regularproduction:
C R 6 persons $80 124 $59,520
Subcontractcost@$10/unit:
C SC 2,480units $20 / unit $49,600

(b)

Plan6Constantworkforceof7persons;subcontract
tomeetextrademand:Labor1.6hours/unit

Period
1
2
3
4
5
6
7
8

Expected Demand
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
14,20
0

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183

CHAPTER 13A G G R E G AT E P L A N N I N G

13.3(contd)

Period

Demand

Productio
n
(Result of
Previous Inventory Stockout Hire Layof
Month)
(Units)
(Units) (Units (Units)
)

1 (Jan)

1,400

1,600

400

2 (Feb)

1,600

1,400

200

3
4
5
6
7
8

1,800
1,800
2,200
2,200
1,800
1,400

1,600
1,800
1,800
2,200
2,200
1,800

(Mar)
(Apr)
(May)
(June)
(July)
(Aug)

200
200
200
400

400

400
800
1,800
@ $20
=$36,000

400
400

$400 Total
@ $100 Personnel Cost
=$40,0
00

Note:Decemberdemandwas1,600,andbecauseourstrategyischasingpriorperioddemand,ourJanuaryproductionis1,600.So200unitsremainin
13.4
Plan
B
inventory,andJanuaryproductionadds200unitstothisinventory,foratotalof400units.Inventoryunits:Jan.400+Feb.200+July400+Aug.800
Period
Demand
Production
Ending Inv.
Subcon (Units)
Extra
(400fromJulyand400fromAugust)=1,800unitsat$20=$36,000.Stockoutunits:May400unitsat$100=$40,000.Hiringandlayoffcosts=
Cost
$115,000.Totalcosts=$36,000+$40,000+$115,000=$191,000.
0
1
2
3
4
5
6
7
8

1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400

200
200
0
0
0
0
0
0
0

1,400
1,400
1,400
1,400
1,400
1,400
1,400
1,400

400
400
800
800
400

$4,000

30,000
30,000
60,000
60,000
30,000

Plan C
Period
0
1
2
3
4
5
6
7
8

Demand Production*

13.5(a)
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400

1,775
1,775
1,775
1,775
1,775
1,775
1,775
1,775

Ending Inv.
200
575
750
725
700
275
0
0
375

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Stockouts (Units)

150
25

Extra
Cost

$11,500
15,000
14,500
14,000
5,500
15,000
2,500
7,500
Total Extra Cost:

CHAPTER 13A G G R E G AT E P L A N N I N G

*(14,200/8)=1,775average.Allotherthingsbeing
equal, it would appear that Plan C, with a cost of
$85,500andstockoutcostsignored,shouldberecom
mended over Plan A (cost = $224,000) or Plan B
(cost=$214,000).

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184

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CHAPTER 13A G G R E G AT E P L A N N I N G

(b)GraphofPlanC

13.6(a)PlanD:Maximumunitsinovertime=0.201,600=320
Plan D
Period

Demand

Reg.
(Units)

0
1
2
3
4
5
6
7
8

1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400

1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600

O.T.
(Units)

End Inv.
(Units)

320
320
200

200
400
400
200

200

Stockouts
(Units)

Extra
Cost

$8,000
8,000
4,000
0
280
44,000
280
44,000
10,000
4,000
Total Extra Cost:
$122,000

Noting that the additional cost of a stockout is much


greaterthanthesumoftheadditionalcostsforovertime
plus inventory storage, one might look ahead and
schedule overtime where possible. The resulting
aggregateplanwouldbe:

Period

Demand

Reg.
(Units)

O.T.
(Units)

End Inv.
(Units)

0
1
2
3
4
5
6
7
8

1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400

1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600

80
320
320
320
200

200
400
400
280
400
120

200

Stockouts
(Units)

Extra
Cost

$8,000
8,000
9,600
24,000
18,400
160
32,000
10,000
4,000
Total Extra Cost:
$114,000

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CHAPTER 13A G G R E G AT E P L A N N I N G
(b)

186

Plan E
Period

Demand

Production

0
1
2
3
4
5
6
7
8

1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400

1,600
1,600
1,600
1,600
1,600
1,600
1,600
1,600

Subcont (Units)

Ending Inv.

Extra
Cost

200
400
400
200

$8,000
8,000
4,000
0
600
45,000
600
45,000
200
15,000
200
4,000
Total Extra Cost: $129,000

Allotherthingsbeingequal,itwouldappearthatPlanD,
withacostof$122,000,shouldberecommendedover
PlanE(cost=$129,000).
Notethatofalltheplansdiscussed,itwouldappear
thatPlanC,withacostof$85,500,shouldberecom
mendedoverallothers.
13.7

Month

Expected
Demand

Jul
Aug
Sep
Oct
Nov

400
500
550
700
800

Productionperpersonperday:8hr/person4hours/ d i s k
Therefore,eachpersoncanproduce2disksperday,
or40diskspermonth.
(a)Aggregateplan,hiring/layoffonly:

Unit

Beg.
Inventor
y
Over

Perio Demand
(or
d
Short)
Jun
Jul
Aug
Sep
Oct
Nov

Hours

Productio
n
Over

Require at 20 days Personnel Units


d
Require at 4
at 8 hrs
on staf Produce (or Short)
d
each
d

150
150
10
10
20
0

400
500
550
700
800

Personnel
Required

Units

250
510
540
680
800

1,000
2,040
2,160
2,720
3,200

6.25
12.75
13.50
17.00
20.00

8
6
13
14
17
20

240
520
560
680
800

10
10*
20*
0
0

Costs
Layof Hire: 40
Hire
$40

7
1
3
3

$80

Layof: 80

$160
$280
$40
$120
$120

*Inventory(August=10andSept.=20)=308=$240
InventoryCost=308=$240
Hiring/LayoffCost=960
$1,200
Note:Incomputingcost,weassumedthat,ifthecapacityofafractionofaworkerwasneeded(wasexcess),oneworkerwashired
(layedoff).SolutionbyPOMforWindows,inwhichtheincreasecostis$1perunitandthedecreasecostis$2perunit,yieldsa
similarresult,withatotalextracostof$890.
(b)Aggregateplan,overtimeonly:

Period

Production

Production

Ending

Demand

(Regular)

(Overtime)

Inv.

400
500
550
700
800
700

320
320
320
320
320
320

Jun
Jul
Aug
Sep
Oct
Nov
Dec

150
70
110
230
380
480
380

Inventory Holding
Cost
@ $8/unit/month
560

1,580($72$48)=$37,920=Extratotal(OT)cost$560holdingcost=$38,480
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Unitsmadeon $72=4hr
overtime(OT) each$18

$48=4hr
each$12

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CHAPTER 13A G G R E G AT E P L A N N I N G

13.8Calculating added costs for various planning options to


complementProblem13.7:
Holding:$8/unit/month
Subcontracting:$80/unit
Overtime:$24/unit($18/hourover8hours:
$72$48=$24)
Hiring:$1/unit
Layoff:$2/unit
Yourstrategyisonethatinvolveshiring5workersin
Augustand5moreinOctober,asfollows:

Beg.

Unit

Personne
l
Hours Required

Inventor
y
Over
Units

Require
at 20
d
days
Perio Deman
(or
Require
at 4
at 8 hrs
d
d
Short)
d
each

Costs
Productio
Inventory = $8
n
Personnel Units
Over
Hire Layof
Hire: 40
on staf Produce (or Short) $40
d

Jun
Jul
Aug

400
500

150
150
70

250
430

1,000
1,720

8.00
13.00

8
8
13

320
520

70
90

Sep
Oct

550
700

90
60

460
640

1,840
2,560

13.00
18.00

13
18

520
720

60
80

0
5

Studentsshouldbeencouragedtoconsiderthelongrange
implicationsofanyaggregateplanningstrategyinvolving
plannedhiring/firingwithrespecttothedevelopmentofan
appropriatelaborpool,etc.
13.9

Month
Jul
Aug
Sep
Oct
Nov
Dec

Expected Demand
1,000
1,200
1,400
1,800
1,800
1,600

(a)PlanA:Minimumrateof1,000/month,subcontractfor
additional.
Plan A
Period
Jul
Aug
Sep
Oct
Nov
Dec

Demand

Production

Ending Inv.

1,000
1,200
1,400
1,800
1,800
1,600

1,000
1,000
1,000
1,000
1,000
1,000

0
0
0
0
0
0

Subcont. (Units) Extra Cost

200
400
800
800
600

0
12,000
24,000
48,000
48,000
36,000

Total Extra Cost: $168,000

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

$80

Layof: 80

$560
$920
200
$480
$840

= (70 8)
= (90 8) +
= (60 8)
= (80 8) +

CHAPTER 13A G G R E G AT E P L A N N I N G

188

PlanB:Varyworkforce.
Plan B
Period
Jul
Aug
Sep
Oct
Nov
Dec

Demand

Production
(Existing)

Hire (Units)

Layofs
(Units)

1,000
1,200
1,400
1,800
1,800
1,600

1,300
1,000
1,200
1,400
1,800
1,800

200
200
400

300

$18,000
6,000
6,000
12,000

200
12,000
Total Extra Cost:$54,000

(b)PlanBisbestbecauseofcost.Butnotethatproductionisonly8,500units.

13.10(a)

Extra Cost

Hiring:$30/unit

Plan C
Period
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Demand

Production
(Units)

1,000
1,200
1,400
1,800
1,800
1,600

1,300
1,300
1,300
1,300
1,300
1,300

Subcont.
(Units)

400
300

Ending Inv.

Extra Cost

300
600
$15,000
700
17,500
600
15,000
100
2,500
0
24,000
0
18,000
Total Extra Cost:$92,000

(b)PlanD:Maximumunitsinovertime=0.201,300=260
Plan D
Month Demand Reg. (Units) O.T. (Units) End Inv.

Subcont. Idle Time


Units
(Units) Extra Cost

Jul

1,000

1,300

180

120

Aug

1,200

1,300

180

100

Sep

1,400

1,300

80

Oct

1,800

1,300

260

If our object in comparing the plans is to identify


theelementsofanoptimalplan,wemustconsiderthe
following:
PlansA,B,andDbeginwithzeroinitialinventory,
PlanCbeginswithaninitialinventoryof300units.It
is therefore inappropriate to compare directly the
resultsofPlanCwiththoseofPlansA,B,andD.
In addition, we can assume that the warehouse
constraintintroducedinPlanDwouldhaveaffected
thecostsofPlanAandPlanChaditbeenineffectin
thoseplans.
Whatonecansayisthattheaggregateplanning
options should be utilized as available, in the
followingorder:

160

$11,700

10,500

2,000

Layoff:$60/unit
Subcontracting:$60/unit
Stockout:$100/unit

13.11Initialdata:
Costs (per unit)
Reg Time
Overtime
Subcontract
Holding
Stockout
Hiring
Layofs

=
=
=
=
=
=
=

Initial inventory

0
$ 30
Units last period = 1,500
$ 15 extra per unit
not available
10
50
40
80

Carryoverofinventory:$25/unit

Overtime:$40/unit

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CHAPTER 13A G G R E G AT E P L A N N I N G

(a)TheChaseplan:

Period

Demand

Quarter
Quarter
Quarter
Quarter

1
2
3
4

Total

Reg.
Time
Producti
on

1,400
1,200
1,500
1,300

1,400
1,200
1,500
1,300

5,400

5,40
0
@$30/unit

Change
100
200
300
200

Hiring

Layofs

0
0
300

0
300

100
200
0
200

@$40/unit

@$80/unit

Overtimeproduction=$0
Subcontract=$0and
Inventoryholdingandshortagecost=$0

500

(b)TheLevelplan:
Period

Demand

Quarter
Quarter
Quarter
Quarter
Total

1
2
3
4

1,400
1,200
1,500
1,300
5,40*
0

Cost

Reg. Time
Production
1,350
1,350
1,350
1,350
5,40
0
$162,00
0

Inventory
50
100
50
0

Holding
0
100
0
0
10
0
$1,00
0

Shortage
50
0
50
0
10
0
$5,00
0

Change

Hiring

150
0
0
0

0
0
0
0
0
$0

Total Cost:

(c)ALevelplanwillcost$180,000,whileaChaseplan
willcost$214,000.
13.12Initialdata:
Costs (per case)
Reg time

Overtime

Subcontract

Holding

$3
0

45

60

40

Initial inventory
=
0
Production
last = 130
period
0

Quarter Forecast Demand


1

1,800 cases

1,100 cases

1,600 cases

900 cases

(a)PlanA:Chaseplan

Period
Quarter
Quarter
Quarter
Quarter
Total

Demand
1
2
3
4

1,800
1,100
1,600
900
5,40
0

Cost

Reg. Time
Production
1,800
1,100
1,600
900

5,40
0
$162,00
0

Change
500
700
500
700

Hiring
(Increase)

Layofs
(Decrease)

500
0
500
0
1,00
0

0
700
0
700
1,400

$40,00
0

$112,00
0

Total Cost: $314,000

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

Layofs
150
0
0
15
0
$12,00
0

CHAPTER 13A G G R E G AT E P L A N N I N G

190

(b)PlanB:LevelStrategyof1,350cases
Period
Quarter
Quarter
Quarter
Quarter
Total

Forecast
1
2
3
4

1,800
1,100
1,600
900
5,40
0

Cost

Reg. Time
Production

Inventory Holding

1,350
1,350
1,350
1,350
5,400

450
200
450
0

$162,000

0
0
0
0
0
$0

An alternativeway ofviewing thisproblem assigns


thesamecoststoregulartimeproductionandtohiring
(i.e.,$162,000and$2,000)butplacesholdingcostat
$28,000 and shortage cost at $67,500. Total cost is
then$259,500.

Hiring
Layofs
Shortage Change (Increase) (Decrease
)
450
200
450
0
1,10
0
$165,00
0

50
0
0
0

50
0
0
0
50

0
0
0
0
0

$2,00
0

$0

(c)PlanC:LevelStrategyat1200,plussubcontracting:
Reg. Time Overtime Subcontract
Hiring
Layofs
Forecast Production Production Production Inventor Holding Change (Increas (Decrease)
y
e)

Period
Quarter
Quarter
Quarter
Quarter
Total

1
2
3
4

1,800
1,100
1,600
900
5,40
0

Cost

1,200
1,200
1,200
1,200
4,80
0
$144,00

600
300
0

900

$54,00

0
100
0
300

0
100
0
300
40
0
$16,00

(d,e)ThebossimplementsPlanCbecauseitisnotonly
the lowest cost, but has the added advantage of
providing steady employment for the employees
aftertheinitialfirstquarterlayoff.
13.13Assumingthatbackordersarenotpermitted,thesolutionis:

Totalcost=$11,790
Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

100
0
0
0

0
0
0
0
0

100
0
0
0
100

$0

$8,00

191

CHAPTER 13A G G R E G AT E P L A N N I N G

13.14Assumingthatbackordersarenotpermitted,thesolutionis:

Totalcost=$1,186,810
13.15Assumingthatbackordersarenotpermitted,thesolutionis:

Totalcost=$627,100

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

CHAPTER 13A G G R E G AT E P L A N N I N G

Analternativesolutionis:

Totalcost=$627,100
13.16Assumingthatbackordersarenotpermitted,thesolutionis:

Totalcost=$100,750

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

192

193

CHAPTER 13A G G R E G AT E P L A N N I N G

13.17(a)Thecostmatrixandtheoptimalplanareshownbelow:
Cost Matrix:

Quarter 1

Quarter 2

Beg. inv.

0.2

0.4

0.6

0.8

Reg. time 1
Overtime 1
Subcontract 1

1
1.5
2

1.2
1.7
2.2

1.4
1.9
2.4

Reg. time 2
Overtime 2
Subcontract 2

1.5
2
2.5

1
1.5
2

Reg. time 3
Overtime 3
Subcontract 3

2
2.5
3

Reg. time 4
Overtime 4
Subcontract 4
Demand

2.5
3
3.5
500

Optimal Plan:

Quarter 3

Quarter 4

Ending Inv.

Supply

250

1.6
2.1
2.6

1.8
2.3
2.8

400
80
100

1.2
1.7
2.2

1.4
1.9
2.4

1.6
2.1
2.6

400
80
100

1.5
2
2.5

1
1.5
2

1.2
1.7
2.2

1.4
1.9
2.4

800
160
100

2
2.5
3
750

1.5
2
2.5
900

1
1.5
2
450

1.2
1.7
2.2

400
80
100
2600/305

Quarter 1

Quarter 2

Beg. inv.

100

150

Reg. time 1
Overtime 1
Subcontract 1

400

Quarter 3

Quarter 4

Ending Inv.

Dummy

80
100

Reg. time 2
Overtime 2
Subcontract 2

400
80
100

Reg. time 3
Overtime 3
Subcontract 3

40

800
100

Reg. time 4
Overtime 4
Subcontract 4

20
100
400
50

500

750

900

450

Optimalcost=$2,641

(b)Thecostoftheoptimalplanis$2,641.Alternateopti
malsolutionsarepossible.
(c)Allregulartimeisused.
(d)40unitsarebackorderedinQuarter2andproducedon
overtimeinQuarter3atacostof$.50eachforatotal
costof$20.

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

30
100

CHAPTER 13A G G R E G AT E P L A N N I N G

194

13.18Assumingthatbackordersarenotpermitted,onesolution,
ofmultipleoptionalsolutions,is:

Totalcost=$90,850
Note: Endinginventoryof20unitsheldtoperiod6
eachrequiretheadditionalcarryingcostof$3ifproduced
onregularorovertime.Becausetheyareoptimallypro
ducedbysubcontracting(whichisavailable,atanytime),
noadditionalcarryingcostisincurred.
13.19(a) Method Produce to demand (let workforce vary)

Shortages: Lost sales Shortages not carried from month to month


All months
$1,000 $1,300 $1,800

$200
Units

$0

$0

$0

Capacities
Month Demnd Regtm Ovrtm Subcon

Regtm

Ovrtm

Subcon Holdng Shortg Increas Decreas


e
e

Init
Jan
Feb
Mar
Apr
May
June
July
Aug

0
255
294
321
301
330
320
345
340

0
235
255
290
300
300
290
300
290

235
255
290
300
300
290
300
290

20
24
26
1
30
28
30
30

0
15
5
0
0
2
15
20

Tot

2,506

2,260

0
20
24
26
24
30
28
30
30

0
12
16
15
17
17
19
19
20

212
135
Subtotal Costs

2,260 189 57
2,260,00
245,70
102,60

0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0

0
20
35
10
0
0
10
0

0
0
10
0
10

0
0

0
0

75
0

20
0

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

0
0

195

CHAPTER 13A G G R E G AT E P L A N N I N G

Type

Summary Table
Units

Cost

2,260
189
57
0
0
75
20

$2,260,000
$245,700
$102,600
$0
$0
$0
$0

Regtm
Ovrtm
Subcon
Holdng
Shortg
Increase
Decreas
e

Total cost = $2,608,300

(b) Method Produce to demand (let workforce vary)


Shortages: Lost sales Shortages not carried from month to month
All pds
$1,000
$1,300 $1,800
$200
Capacities
Units
Month Demnd Regtm Ovrtm Subcon Regtm
Ovrtm Subcon Holdng
Init
Jan
Feb
Mar
Apr
May
June
July
Aug

0
255
294
321
301
330
320
345
340

0
275
275
275
275
275
275
275
275

Tot

2,506

2,200

Type

0
20
24
26
24
30
28
30
30

0
12
16
15
17
17
19
19
20

212
135
Subtotal Costs

Summary Table
Units

255
275
275
275
275
275
275
275
2,180
2,180,00
0

0
19
26
24
30
28
30
30

$0

$0

$0

Shortg Increase Decreas


e

0
0
15
2
17
17
19
20

0
0
0
0
0
0
0
0

0
0
5
0
8
0
21
15

0
20
0
0
0
0
0
0

0
0
0
0
0
0
0
0

187 90
243,100 162,000

0
0

49
0

20
0

0
0

Cost

Regtm
2,180
$2,180,000
Ovrtm
187
$243,100
Subcon
90
$162,000
Holdng
0
$0
Shortg
49
$0
Increase
20
$0
Decrease
0
$0
Total cost = $2,585,100, or about $50,000
savings

(c) Method Produce to demand (let workforce vary)


Shortages: Lost sales Shortages not carried from month to month
All months
$1,000 $1,400 $1,800
Month Demnd

Capacities
Regtm Ovrtm Subcon

Init
Jan
Feb
Mar
Apr
May
June
July
Aug

0
255
294
321
301
330
320
345
340

0
235
255
290
300
300
290
300
290

Tot

2,506

2,260

0
20
24
26
24
30
28
30
30

0
12
16
15
17
17
19
19
20

212
135
Subtotal Costs

$200

$0

$0

$0

Units
Holdng Shortg Increas Decreas
e
e

Regtm

Ovrtm

Subcon

235
255
290
300
300
290
300
290

20
24
26
1
30
28
30
30

0
15
5
0
0
2
15
20

0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0

0
20
35
10
0
0
10
0

0
0
0
0
0
10
0
10

2,260 189
2,260,00 264,600

57
102,600

0
0

0
0

75
0

20
0

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

CHAPTER 13A G G R E G AT E P L A N N I N G

Summary TableOvertime Costs: $1400


Type
Units
Cost
Regtm

2,260

$2,260,00
0
Ovrtm
189
$264,600
Subcon
57
$102,600
Holdng
0
$0
Shortg
0
$0
Increase
75
$0
Decrease
20
$0
Total cost = $2,627,200

Thereisnochangeinthesolutionotherthanhigher
cost.

196

(c)Theaccountingbusiness,aseveryonerecognizes,has
oneextremelybusyseason(duringMarchandApril
taxpreparationtime),andseverallesshecticbutstill
veryactivemonths(suchaswhenquarterlypayments
aredue).CouldanotherCPAbejustifiedat$60,000
peryearinsalary?Basedsolelyonsavingsinovertime
costsandthecostof Forrester,itwouldappeartobe
unclear, as savingstotal only $30,625. On theother
hand,currentemployeesaredrawingovertimepayof
$40,000(averaging$10,000each)duringMarchand
April, and may be very unhappy over the loss of
income.Wewouldhavetocarefullyexaminetheother
6monthstoseeifhiringismerited.

Method
Produce
to demand (let workforce
vary)
13.21
(a)
Estimated
Reg.
Shortages: Lost sales Shortages not
carried from month to month
Time
All months Billable
$1,200
$1,800 Overtime
$200
$0 Forrester
$0
$0
Billable $1,000
Reg. Time
Overtime
Forrester
Units
Month
hours Capacities
CPAs
Hours
Cost
Hours
Cost
Hours
Cost
Month Demnd Regtm Ovrtm Subcon Regtm Ovrtm Subcon Holdng Shortg Increase Decrea
Jan
660
5
800
$25,000
0
$0
0
$0

se
Feb
550
5
800
$25,000
0
$0
0
$0
Init Mar 0 1,100
0
05
0
800
$25,000
300
$18,750
0
$0
Jan
255
235
20
12
235 20 0
0
0
0
0
Apr
1,320
5
800
$25,000
400
$25,000
120
$15,000
Feb
294
255
24
16
255 24 15
0
0
20
0
May
715
5
800
$25,000
0
$0
0
$0
Mar
321
290
26
15
290 26 5
0
0
35
0
June
649
5
800
$25,000
0
$0
0
$0
Apr
301
300
24
17
300 1 0
0
0
10
0
$150,00
70
$43,75
12
$15,00
May
330
300
30
17
300 30 0
0
0
0
0
0
0
0
0
0
June
320
290
28
19
290 28 2
0
0
0
10
July
345
300
30
19
300 30
15
0
0
10
0
(b)Withtheincreaseinbusiness,5accountantsappearto
Aug
340
290
30
20
290 30 benecessary.Thereisstillaneedforovertimeduring
20
0
0
0
10
Tot

2,506

2,260

212
135
Subtotal

2,260 189 thetaxseason(aboutthesameasinProblem13.20),


57
0
0
75
20
$2,260,00 $226,80 butthereisabigsavingsinForresterspay(which
$102,60
0
0
0
0

is double that of overtime for a regular employee).


WhatCohenneedstodoisfindadditionalaccounting
activities that his staff can work on during the
offpeakseason.

Summary TableOvertime Costs: $1,200


Type
Units
Cost
Regtm
Ovrtm
Subcon
Holdng
Shortg
Increase
Decrease

2,260
$2,260,000
189
$226,800
57
$102,600
0
$0
0
$0
75
$0
20
$0
Total cost = $2,589,400

13.22(a)CurrentmodelSinglepriceatSoutheasternAirlines
Sales 80passengers (Netprice/ seat)
=80 ($140 25) $9,200
(b)Proposedmodeltwopricepoints
Sales 65passengers ($80 $25) 35passengers ($190 $25)
(65)($55) (35)($165)
$3,575 $5,775
$9,350

Again thereis nochange inthe solutionother than


alowercost.
13.20(a,b)Aggregateplananditscosts
Estimate
d
Billable
Month
hours
Jan
Feb
Mar
Apr
May
June

600
500
1,000
1,200
650
590

Reg. time

CPAs

billable
hours

Reg. Time
cost

4
4
4
4
4
4

640
640
640
640
640
640

$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$120,00
0

The newapproach isonly slightlybetter in


terms of sales but provides a more compli
Overtime
Overtime
Forrester
Forrester
catedticketingsystem.Theissueoffairnessis
hours

cost

0 alwaysparamount.
$0
0
$0
320
$20,000
320
$20,000
10
$625
0
$0
650
$40,62
5

Totalcost=$120,000+$40,625+$35,000=$195,625
Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

hours

cost

0
0
40
240
0
0
28
0

0
$0
$5,000
$30,000
$0
$0
$35,00
0

197

CHAPTER 13A G G R E G AT E P L A N N I N G

ADDITIONAL HOMEWORK PROBLEMS


Herearesolutionstoadditionalhomeworkproblems
(13.2313.26)thatappearonourWebsite,at
www.myomlab.com.
13.23Theintentoftheauthorsisthatthisproblembesolved
using the transportation problem format. Assuming that back
ordersarenotpermitted,thesolutionis:

Totalcost=$20,400
13.24Assumingthatbackordersarenotpermitted,thesolutionis:

Totalcost=$874,320

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CHAPTER 13A G G R E G AT E P L A N N I N G

198

13.25Eventhoughbackordersarepermitted,notetheyarenot
used.Oneofthemultipleoptimalsolutionsis:

Totalcost=$308,125
Note:Endinginventoryof3unitsheldtoperiod5each
require the additional carrying cost of $200. You may
wishtoconveythishinttostudentswhenassigningthe
problem.
13.26Costs (per refrigerator)
Reg time =
Overtime =
Subcontrac =
t
Holding
=
Stockout
=
Hiring
=
Layof
=

(a)
Period
Jan
Feb
Mar
Apr
May
June
Total
Cost

Forecast

$48 = 4 hr $12/hr.
72 = 4 hr $18/hr.
80
8
0
40
80

Jan
Feb
Mar
Apr
May
June

Reg Time
Demand Production Inventory
400
500
550
700
800
700
365
0

400
500
550
700
800
700
365
0
$175,20

250
250
250
250
250
250

Demand

Initial inventory
Units last period

400
500
550
700
800
700

250
320

Holding

Shortage

Change

Increase

Decreas
e

250
250
250
250
250
250
150
0

0
0
0
0
0
0
0

80
100
50
150
100
100

$12,00

$0

80
100
50
150
100
0
48
0
$19,20
0

0
0
0
0
0
100
10
0
$8,00
0

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.
0
0

199

CHAPTER 13A G G R E G AT E P L A N N I N G

(b)Each employee produces 2 units per day. So,


210employees20days=400unitsperperiod
Period
Jan
Feb
Mar
Apr
May
June
Total

Forecast
Demand

Reg Time
Production Inventory

400
500
550
700
800
700
365
0

Cost

400
400
400
400
400
400
240
0
$115,20

250
150
0
300
700
1000

(c)Plan B is certainly less expensive, but over the six


months Bell Refrigeration has a shortage of 2000
refrigerators . . . about half of its sales. The loss
suggeststhisisnotagoodplan

CASE STUDIES
1

SOUTHWESTERNUNIVERSITY:G

This caseprovides thestudent withquantitative informationto


develop an aggregate capacity plan, but, as often occurs in
services, demand is so variable that there are not many viable
staffingalternatives.Studentsmayalsobefrustratedbythelack
ofdetaileddataonthenatureofservicedemandandtheresources
requiredtomeetdemand.Evenwiththesedrawbacks,thestudent
shouldbeabletogaininsightintotheaggregateplanningproblem
andhelpthechiefjustifyhispersonnelrequests. Studentsmay
wanttotalkwiththepolicedepartmentattheirownuniversityto
seehowithandlessimilarproblems.
1.Whichvariationsindemandforpoliceservicesshouldbecon
sideredinanaggregateplanforresources?Whichvariations
canbehandledwithshorttermschedulingadjustments?
Anaggregateplanshouldsetfulltimestaffinglevels;esti
mate parttime and overtime needs for budget purposes;
determinetimesoftheyearfortraining,vacations,andother
nonessential duties; and establish an agreedupon level of
policeservicesfortheuniversitycommunity(i.e.,Whatrole
isthepoliceofficertoplay?Whatresponsetimetocallsfor
serviceisappropriate?Whatservicesshouldbeprovided?).
Shorttermschedulingadjustmentscanbemadefordifferent
daysoftheweek,shifts,andspecialevents.
2.Evaluate the current staffing plan. What does it cost? Are
26officerssufficienttohandlethenormalworkload?
Costofcurrentstaffingplan:
Salaries:
26 officers $28,000 per year
Overtime:
2,400 hours per year $18 per hour
Subcontractors:
40 officers 9 hours $18 per hour
5 football games per year
25 part-timers 9 hours $9 per hour
5 football games per year

=
$728,000
= $43,200

= $32,400

Holding

Shortage

Change

Increase

Decreas
e

250
150
0
0
0
0
40
0
$3,20

0
0
0
300
700
1000
200
0
$0

80
0
0
0
0
0

80
0
0
0
0
0
80

0
0
0
0
0
0
0

$3,20

$0

Normalworkloadduringfallandspringsemesters:
1st shift
2nd shift
3rd shift

Weekday

Weekend

7-day Average

5
5
6

4
6
8

4.7
5.3
6.6
16.
6

Numberof24hourpositionseachweek=16.6/3=5.5
Numberofpersonsrequired=5.5positions
5persons/position
=27.6persons
Normalworkloadduringthesummer:
1st shift
2nd shift
3rd shift

Weekday

Weekend

7-day Average

2.5
2.5
3

2
3
4

2.4
2.7
3.3
8.
4

Numberof24hourpositionseachweek=8.4/3=2.8
Numberofpersonsrequired=2.8positions5persons/position
=14persons
Twentysixofficersismorethanenoughtohandlethenormal
workloadduringthethreesummermonths.However,duringthe
remainingninemonthsoftheyear,thepolicedepartmentisal
mosttwopersonsshort.Obviously,someovertimeiscurrently
beingusedtomeetthedemandsofthenormalworkweek.
3.Whatwouldbetheadditionalcostofthechiefsproposal?
Howwouldyousuggestthatthechiefjustifyhisrequest?
Salary:4officers$28,000peryear=$112,000
Overtime:noadditionalcost,assubcontractingandover
timecostsarethesame.
Tojustifyhisproposal,thechiefshouldpointoutthattwo
positions(representing$56,000)areneededtopursuetheuni
versitysrequestformorecrimeprevention,safety,andhealth
programs.Theothertwopositionscouldsaveupto$18,720in
overtimepremiums(totalOTof2,400hoursminusfootball
gameOTof1,360hourstimes$18perhour)andareneeded
tomaintainthedesiredlevelofpoliceservices.Onaperhour
basis,thesalariedservicesaremorecosteffectivethanusing
overtimeorsubcontracting(@$18/hour).

= $10,125
$813,72

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

CHAPTER 13A G G R E G AT E P L A N N I N G

4.How much does it currently cost the university to provide


policeservicesforfootballgames?Whatwouldbethepros
andconsofsubcontractingthisworkcompletelytooutside
lawenforcementagencies?
Costofpoliceofficersforfootballgames:
18officerswork8hoursovertime@$18/hr
8officerswork16hoursovertime@$18/hr
40outsideofficerswork9hours@$18/hr
25parttimerswork9hours@$9/hr
5footballgamesperyear
Cost [(18 8 18) (8 16 18) (40 9 18)
(25 9 9)] 5
[2,592 2,304 6,480 2,025] 5
[13,401] 5 $67,005
Subcontractingsecurityforfootballgameswouldrelievethe
wearycampuspoliceandallowthemtoperformtheirnormal
dutiesmoreeffectively.However,footballsecurityishighly
visible, and the absence of campus police may hurt their
image in the university community and rob them of the
opportunitytoworkcloselywithlawenforcementpersonnel
fromagenciesinanoncrisissituation.Itmayalsobedifficult
fortheuniversitytomaintainthesamelevelofcontrolover
subcontracted work, especially in terms of discretionary
treatmentofstudentsandalumni.
Intermsofcost,itisdoubtfulthattheworkcouldbe
subcontractedascheaplyasitiscurrentlyperformedbecause
thecostofsupervisoryandmanagerialpersonnelwouldhave
tobeincludedinthepackage(andcurrentlynosupervisorsor
managersarepaidovertimefortheirwork).
5.Canyouproposeanyotheralternatives?
Many of the innovative suggestions for handling the
variability in demand for services involve using parttime
workers. Police officers require extensive training, so this
alternativeusuallymeanshiringoffdutypoliceofficersfrom
otheragencies.Underthesecircumstances,thehoursthatoff
duty officers can moonlight are limited, and, except for
footballSaturdays,maybehardtoschedule(i.e.,allparttime
agenciesarebusyatthesametime).Anotherwaytohandle
parttime or seasonal requirements for work is to find
complementaryworkforthefulltimeemployeesthatfollows
adifferentdemandpattern.Inthiscase,thenonpeakperiod
for police services falls during the summer months. What
other university services increase during those months?
Perhapstheidledofficerscouldbeusedascampusguides
duringsummerorientation,asaidesforthesummercamps
andothersummerprogramsheldoncampus,oraspartofthe
groundscrew.Atleastonesmallprivatecollegeutilizesits
policeofficersinthisexpandedfashion.Itcertainlyincreases
theofficersinvolvementwiththeuniversitycommunity.
2

ANDREWCARTER,INC.

This case presents some of the basic concepts of aggregate


planningbythetransportationmethod.Thecaseinvolvessolvinga

200

rather complex set of transportation problems. Four different


configurationsofoperatingplantshavetobetested.Thesolutions,
althoughrequiringrelativelyfewiterationstooptimality,involve
degeneracyifsolvedmanually.
Thecostsare:
Configuration
All plants operating
1 & 2 operating, 3
closed
1 & 3 operating, 2

Total
Variable
Cost

Total
Fixed
Cost

Total
Cost

$179,730
188,930

$41,000 $220,730
33,500 222,430

183,430

34,000

217,430

Thelowestweeklytotalcost,operatingplants1and3with2
closed,is$217,430.Thisis$3,300perweek($171,600peryear)
or1.5%lessthanthenextmosteconomicalsolution,operatingall
3 plants. Closing a plant without expanding capacity of the
remaining plants means unemployment. The optimum solution,
usingplants1and3,indicatesovertimeproductionof4,000units
at3and0overtimeat1.Theallplantoptimahavenouseof
overtime and include substantial idle regular time capacity:
11,000units(55%)inplant2andeither5,000unitsin1(19%of
capacity) or 5,000 in 3 (20% of capacity). The idled capacity
versusunemploymentquestionisaninteresting,nonquantitative
aspectofthecaseandcouldleadtodiscussionoftheforecastsfor
thehousingmarketandthustheplantsproduct.
Theoptimumproducingandshippingpatternis:
From

To (Amount)

Plant 1 (R.T.)
Plant 3 (R.T.)

W2 (13,000); W4 (14,000)
W1 (5,000); W3 (11,000); W4 (1,000); W5
(8,000)
W1 (4,000)

Plant 3 (O.T.)

Therearethreealternativeoptimalproducingandshipping
patterns.
Getting the solution manually should not be attempted.
ItwilltakeeighttableauxtodotheAllPlantsconfiguration,
withdegeneracyappearingintheseventhtableau;the1&2
configurationtakesfivetableaux,etc.Itisstronglysuggestedthat
POMforWindows,Excel,orothersoftwarebeused.

ADDITIONAL CASE STUDY*


CORNWELLGLASS
Enteringthedataprovidedintosoftware,thentogglingthepure
strategiesandtryingthemyieldsthefollowingcosts:
Plan1(smoothproduction):$849,077
Plan2(meetdemandexactly):$104,575
Plan3(produce1,900asbase,thenuse
OTandsubcontracting):$82,858
Atthispoint,thequestionis,canwedobetterwithtrialand
error?Abettersolutionfollows.
*ThiscaseisfoundonourCompanionWebsite,
www.pearsonhighered.com/heizer.

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

201

CHAPTER 13A G G R E G AT E P L A N N I N G

Aggregate Planning
Time periods 52
Shortages: Back ordersCarry shortages from period to
period
All pds
1,900
0
0
$0
$8.00

Pd
Init
April 15
22
29
May 6
13
20
27
June 3
10
17
24
July 1
8
15
22
29
Aug. 5
12
19
26
Sept. 2

9
16
23
30
Oct. 7
14
21
28
Nov. 4
11
18
25
Dec. 2
9
16
23
30
Jan. 6
13
20
27
Feb. 3
10
17
24
Mar. 3
10
17
24
31
Apr. 7
Total

Demnd

Regtm

73
1,829
1,820
1,887
1,958
2,011
2,063
2,104
2,161
2,258
2,307
2,389
2,434
2,402
2,385
2,330
2,323
2,317
2,222
2,134
2,065
1,973
1,912
1,854
1,763
1,699
1,620
1,689
1,754
1,800
1,864
1,989
2,098
2,244
2,357
2,368
2,387
2,402
2,418
2,417
2,324
2,204
2,188
2,168
2,086
1,954
1,877
1,822
1,803
1,777
1,799
1,803
1,805
107,544

1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
1,900
98,800

Schedule
Ovrtm
Subcon Regtm
0
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
15
250
173
250
167
250
72
234
0
165
0
73
0
12
0
0
0
0
0
0
0
0
0
0
0
0
0
207
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0
186
0
54
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8,931
427
Subtotal Costs

$10

$0.12

$20.0

$5.63 $15.7
3

Units
Ovrtm Subcon Holdng Shortg Incres Decre
s

1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 250
1,900 234
1,900 165
1,900
73
1,900
12
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900
207
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900
250
1,900 250
1,900 250
1,900 186
1,900
54
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
1,900
0
98,800 8,931
0 71,448

0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
173
167
72
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
427
4,27

394
724
987
1,179
1,318
1,405
1,451
1,440
1,332
1,175
936
652
400
165
0
0
0
0
0
0
0
0
46
183
384
664
875
1,021
1,328
1,614
1,775
1,827
1,733
1,526
1,308
1,071
819
551
284
110
56
18
0
0
0
23
101
198
321
422
519
614
32,949
3,953.9

Copyright2011PearsonEducation,Inc.publishingasPrenticeHall.

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0