Syndicate

YP 62B
Bradford Manuf
Dimas Fathurrahman
Kevin Christiandi (2
Mayra Z.N. (291
Tommy Kurniawan D.
 Syndicate 4
YP 62B
dford Manufacturing
as Fathurrahman (29119477)
vin Christiandi (29119385)
Mayra Z.N. (29119384)
my Kurniawan D. (29119404)
 Quarter
1 2 3 4 1
Demand
2000 2200 2500 2650 2200
Working Days 60 60 60 60 60
Safety stock 338 385 408 338

Working days 5 days/week 1000

Running lines 10 lines
Employees 6 People/line
Running lines duration 7.5 hours
Working hours 8 hours/day
Overtime 2 hours/day
Labor cost (regular) 20 /hour
Labor cost (overtime) 30 /hour
Production rate 450 cases/hour
Inventory cost 1 /case/year
Inventory cost 0.25 /case/quarter

Beginning inventory 200 in 1000 cases

Backorders cost 2.4 /case
Hiring cost 5000 /employee
Layoff cost 3000 /employee

Assumption : a quarter = 12 weeks

 Agregate planning
Quarter
1 2 3 4 1
Beginning inventory 200 338 385 408 338
Demand forecast 2000 2200 2500 2650 2200
Safety stock 338 385 408 338 0
Prod. Requirements 2138 2247 2523 2580 1862
Ending inventory 338 385 408 338 0

Production plan 1: Exact Production, Vary Workforce

Quarter
1 2 3 4 1
Prod. Requirements 2138 2247 2523 2580 1862
Production hours required 16035 16852.5 18922.5 19350 13965
Working days per quarter 60 60 60 60 60
Hours/quarter/worker 480 480 480 480 480
Workers required 34 36 40 41 30
New workers hired 0 2 4 1 0
Hiring cost 0 10000 20000 5000 0
Workers laid off 0 0 0 0 11
Layoff cost 0 0 0 0 33000
Straight time cost 320700 337050 378450 387000 279300
Total

Production plan 2: Constant Workforce, Vary Inventory, and Stock Out

Quarter
1 2 3 4 1
Beginning inventory 200 360 320 -20 -510
working days per quarter 60 60 60 60 60
Prod. Hours available 16200 16200 16200 16200 16200
Actual production 2160 2160 2160 2160 2160
Demand forecast 2000 2200 2500 2650 2200
Ending inventory 360 320 -20 -510 -550
Backorder cost 0 0 48 1224 1320
Safety stock 338 385 408 338 0
Units excess 22 0 0 0 0
Inventory cost 5.5 0 0 0 0
Straight time 324000 324000 324000 324000 324000
Total

Production Plan 3: Constant Low Workforce, Subcontract

Quarter
 1 2 3 4 1
Prod. Requirements 2138 2247 2523 2580 1862
Working days per quarter 60 60 60 60 60
Prod. Hours Available 13500 4500 4500 4500 4500
Actual Production 1800 600 600 600 600
Unit subcontracted 338 1647 1923 1980 1262
Subcontracting cost 0 0 0 0 0
Straight-time cost 270000 90000 90000 90000 90000
Total

Production plan 4: Constant Workforce Overtime

Quarter
1 2 3 4 1
Beginning Inventory 200
Working days per quarter 60 60 60 60 60
Production hours 4500 4500 4500 4500 4500
Regular shift production 600 600 600 600 600
Demand forecast 2000 2200 2500 2650 2200
Units available before overtim -1200 -1600 -1900 -2050 -1600
Units overtime 1200 1600 1900 2050 1600
Overtime cost 270000 360000 427500 461250 360000
Safety stock 338 385 408 338 0
Units excess 0 0 0 0 0
Inventory cost 0 0 0 0 0
Straight-time cost 90000 90000 90000 90000 90000
Total

Comparison of Four Plans

Costs Plan 1 Plan 2 Plan 3 Plan 4
Hiring 35000
Layoff 33000
Excess Inventory 5.5
Shortage 2592
Subcontract 0
Overtime 1878750
Straight-time 1702500 1620000 630000 450000
1,770,500 1,622,598 630,000 ###

Summary :
The lowest cost for the four plans is Plan 2 and Plan 3, which plan 2 is
Constant Workforce, Vary Inventory, and Stock Out and plan 3 is Constant
Low Workforce, Subcontract.
 11350

Total

35000

33000
1702500
1770500

tock Out

Total

2592

5.5
1620000
1622598

ct
 0
630000
630000

Total

1878750

0
450000
2328750