1. Given the following production plan calculate (a) chase production plan and (

Question

1. Given the following production plan calculate (a) chase production plan and (b) level production plan. Compute the monthly production, ending inventory/ (backlog), and workforce levels. (6 points each plan

A worker will produce 250 units each month

Beginning inventory for January is 500 units. The company’s safety stock level is 400 units.

Chase (6 points)

Month

Jan

Feb

Mar

Apr

May

Jun

Demand

          26,150

      29,450

      34,600

      38,850

      33,300

      34,200

Production

Ending Inventory

Workforce

Level (6 points)

Month

Jan

Feb

Mar

Apr

May

Jun

Demand

          26,150

      29,450

      34,600

      38,850

      33,300

      34,200

Production

Ending Inventory

Workforce

2. Given the following production schedule, compute the available-to-promise quantities.

(8 points)

ATP

Week

1

2

3

4

5

6

7

8

Master Production Schedule       BI=500

26,250

29,250

34,750

38,750

33,250

34,250

32,750

32,750

Committed Customer Orders

25,500

29,600

34,300

39,100

31,900

34,800

33,000

32,300

Available to Promise

Month

Jan

Feb

Mar

Apr

May

Jun

Demand

          26,150

      29,450

      34,600

      38,850

      33,300

      34,200

Production

Ending Inventory

Workforce

Explanation / Answer

1) Workforce for Chase plan is determined for every month by the formula

(Dt - Et-1 + S)/250 , where Dt is this month demand, Et-1 is the previous month ending inventory and S is the safety stock level.

Workforce for Level production = (Total demand - Initial inventory + Safety stock)/(6*250) = (196550-500+400)/(6*250) = 131

Production in each month = Workforce*250

Ending inventory = Et-1 + Pt - Dt , where Pt is this month production  

Chase Month Jan Feb Mar Apr May Jun Demand 26,150 29,450 34,600 38,850 33,300 34,200 Production 26,250 29,250 34,750 38,750 33,250 34,250 Ending Inventory 600 400 550 450 400 450 Workforce 105 117 139 155 133 137 Level Month Jan Feb Mar Apr May Jun Demand 26,150 29,450 34,600 38,850 33,300 34,200 Production 32,750 32,750 32,750 32,750 32,750 32,750 Ending Inventory 7,100 10,400 8,550 2,450 1,900 450 Workforce 131 131 131 131 131 131

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