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Tutorial 4 - Resource Planning PT 1

The document outlines resource planning strategies, including chase and level production methods, to determine monthly production, ending inventory, and workforce levels based on given demand. It provides calculations for two different production plans with specified beginning and desired ending inventories. Additionally, it includes available-to-promise quantities for two models over several weeks, highlighting committed customer orders and production schedules.

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hussein safwat
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29 views10 pages

Tutorial 4 - Resource Planning PT 1

The document outlines resource planning strategies, including chase and level production methods, to determine monthly production, ending inventory, and workforce levels based on given demand. It provides calculations for two different production plans with specified beginning and desired ending inventories. Additionally, it includes available-to-promise quantities for two models over several weeks, highlighting committed customer orders and production schedules.

Uploaded by

hussein safwat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Tutorial (6)

CHAPTER (6): RESOURCE PLANNING


Question 1:
Given the following production plan, use (a) a chase production
strategy and (b) a level production strategy to compute the
monthly production, ending inventory/(backlog) and workforce
levels. A worker can produce 100 units per month. Assume the
beginning inventory as of January is 200, and the firm desires to
have 400 inventory at the end of June.
Month Jan Feb Mar Apr May Jun
Demand 3600 3700 3700 5200 5200 3000
Production
Ending
Inventory
Workforce
a) Chase Production Strategy:

Month Jan Feb Mar Apr May Jun

Demand 3600 3700 3700 5200 5200 3000

Production 3400 3700 3700 5200 5200 3400

Ending inventory 0 0 0 0 0 400

Workforce 34 37 37 52 52 34
b) Level Strategy
production = total demand – beginning inventory + ending inventory
24,400-200+400/6 = 4,100.
Ending Inventory in May Indicates a backlog of 700

Month Jan Feb Mar Apr May Jun

Demand 3600 3700 3700 5200 5200 3000

Production 4100 4100 4100 4100 4100 4100

Ending inventory 700 1100 1500 400 *-700 400

Workforce 41 41 41 41 41 41
Question 2:
Given the following production schedule, compute the
available-to-promise quantities.

Week 1 2 3 4 5 6 7 8

MODEL A

MPS BI = 60 20 30 20 20 20 50 0 20

Committed Customer Orders 50 10 30 10 20 20 10 0

ATP:D
Answer:

Week 1 2 3 4 5 6 7 8

MODEL A

MPS BI = 60 20 30 20 20 20 50 0 20

Committed Customer 50 10 30 10 20 20 10 0
Orders
ATP:D 30 10 0 10 0 20 0 20
Question 3:

Week 1 2 3 4 5 6 7 8
MODEL B
MPS BI = 20 20 0 20 20 0 20 20 20
Committed Customer 10 10 10 10 10 0 0 10
Orders
ATP:D
Answer

Week 1 2 3 4 5 6 7 8
MODEL B
MPS BI = 20 20 0 20 20 0 20 20 20
Committed Customer 10 10 10 10 10 0 0 10
Orders
ATP:D 20 0 10 0 0 20 20 10
Question 4
• Given the following production plan, use a (a) chase production
strategy and (b) level production strategy to compute the monthly
production, ending inventory/(backlog) and workforce levels. A
worker is capable of producing 100 units per month. Assume the
beginning inventory as of January is zero, and the firm desires to
have zero inventory at the end of June.

Month Jan Feb Mar Apr May Jun


Demand 2000 3000 5000 6000 6000 2000
Production
Ending Inventory
Workforce
Answer
(a) Chase production strategy  production matches demand.

Month Jan Feb Mar Apr May Jun


Demand 2000 3000 5000 6000 6000 2000
Production 2000 3000 5000 6000 6000 2000
Ending inventory 0 0 0 0 0 0
Workforce 20 30 50 60 60 20

(b) Level production strategy  production = 24,000/6 = 4,000


Month Jan Feb Mar Apr May Jun
Demand 2000 3000 5000 6000 6000 2000
Production 4000 4000 4000 4000 4000 4000
Ending inventory 2000 3000 2000 0 -2000 0
Workforce 40 40 40 40 40 40
Ending inventory of -2000 in May indicates a backlog of 2000 units

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