aggregate planning green mills2
DESCRIPTION
green millTRANSCRIPT
SummarySUMMARY
CostSPOT MARKETCHASE - 1CHASE - 2LEVELMIXEDUS Spot Market$7,760,0000.00.00.00.0Regular Time0.0$2,910,000$2,602,500$2,430,000$2,910,000Overtime 0.00.0$410,000$80,0000.0Holding0.00.00.0$88,7500.0Hiring0.0$30,000$21,0000.0$30,000Layoff0.0$17,000$12,5000.0$17,000Shipping0.0$970,000$970,000$795,000$970,000TOTAL COST$7,760,000$3,927,000$4,016,000$3,393,750$3,927,000
Chase-1CHASE STRATEGY (MATCH DEMAND, VARYING WORK FORCE)No OvertimeCost / 1000 board feetJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECDemand1,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000800,000EstimatedWorker202022263036445048403224Regular Production50,0001,000,0001,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000Shortage / Surplus0.0(100,000)(200,000)(200,000)(300,000)(400,000)(300,000)100,000400,000400,000400,000400,000Additional / Layoff Workers50,0000.0244686(2)(8)(8)(8)(8)ActualWorker202226303644504840322416Regular Production50,0001,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000800,000 Production Cost$150$150,000$165,000$195,000$225,000$270,000$330,000$375,000$360,000$300,000$240,000$180,000$120,000$2,910,000.0Hiring cost / new employee$1,0000.0$2,000$4,000$4,000$6,000$8,000$6,0000.00.00.00.00.0$30,000.0Layoff cost / employee$5000.00.00.00.00.00.00.0$1,000$4,000$4,000$4,000$4,000$17,000.0Shipping cost$50$50,000$55,000$65,000$75,000$90,000$110,000$125,000$120,000$100,000$80,000$60,000$40,000$970,000.0TOTAL COST$200,000$222,000$264,000$304,000$366,000$448,000$506,000$481,000$404,000$324,000$244,000$164,000$3,927,000.0
US SPOT MARKET$400$400,000$440,000$520,000$600,000$720,000$880,000$1,000,000$960,000$800,000$640,000$480,000$320,000$7,760,000
Chase-2CHASE STRATEGY (MATCH DEMAND, VARYING WORK FORCE)With OvertimeCost / 1000 board feetJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECDemand1,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000800,000EstimatedWorker202020212530374141403224Regular Production50,0001,000,0001,000,0001,000,0001,050,0001,250,0001,500,0001,850,0002,050,0002,050,0002,000,0001,600,0001,200,000Shortage / Surplus0.0(100,000)(300,000)(450,000)(550,000)(700,000)(650,000)(350,000)50,000400,000400,000400,000Overtime Production Capacity25%250,000250,000250,000262,500312,500375,000462,500512,500512,500500,000400,000300,000Can covered by overtime?No NeedYesNoNoNoNoNoYesNo NeedNo NeedNo NeedNo NeedOvertime Production0.0100,000250,000262,500312,500375,000462,500350,0000.00.00.00.0Remaining Shortage / Surplus0.00.0(50,000)(187,500)(237,500)(325,000)(187,500)0.050,000400,000400,000400,000Need additional workers?NoNoYesYesYesYesYesNoNoNoNoNoAdditional Workers Needed0.00.0145740.00.00.00.00.0Need to layoff?NoNoNoNoNoNoNoNoYesYesYesYesTotal layoff 0.00.00.00.00.00.00.00.01888ActualWorker202021253037414140322416Regular Production50,0001,000,0001,000,0001,050,0001,250,0001,500,0001,850,0002,050,0002,050,0002,000,0001,600,0001,200,000800,000 Production Cost$150$150,000$150,000$157,500$187,500$225,000$277,500$307,500$307,500$300,000$240,000$180,000$120,000$2,602,500.0Shortage / Surplus0.0(100,000)(250,000)(250,000)(300,000)(350,000)(450,000)(350,000)0.00.00.00.0Overtime Capacity25%250,000250,000262,500312,500375,000462,500512,500512,500500,000400,000300,000200,000Overtime Production0.0100,000250,000250,000300,000350,000450,000350,0000.00.00.00.0 Overtime Production Cost$2000.0$20,000$50,000$50,000$60,000$70,000$90,000$70,0000.00.00.00.0$410,000.0Hiring cost / new employee$1,0000.00.0$1,000$4,000$5,000$7,000$4,0000.00.00.00.00.0$21,000.0Layoff cost / employee$5000.00.00.00.00.00.00.00.0$500$4,000$4,000$4,000$12,500.0Shipping cost$50$50,000$55,000$65,000$75,000$90,000$110,000$125,000$120,000$100,000$80,000$60,000$40,000$970,000.0TOTAL COST$200,000$225,000$273,500$316,500$380,000$464,500$526,500$497,500$400,500$324,000$244,000$164,000$4,016,000.0
US SPOT MARKET$400$400,000$440,000$520,000$600,000$720,000$880,000$1,000,000$960,000$800,000$640,000$480,000$320,000$7,760,000
Level (with overtime)LEVEL STRATEGY (CONSTANT WORK FORCE, VARYING INVENTORY)Maximize Inventory Capacity by Maximize Overtime in Early YearAverage Actual Demand / Month1,325,000Shipping Limitation1,500,000Average Worker / Month27Additional Worker7Hiring Cost$7,000Cost / 1000 board feetJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECDemand1,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000800,000Shipping1,000,0001,100,0001,300,0001,500,0001,500,0001,500,0001,500,0001,500,0001,500,0001,500,0001,200,000800,000Beginning Inventory0.0350,000600,000650,000500,000350,000200,00050,0000.00.00.0150,000Regular Production50,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,000Overtime Production0.00.00.00.00.00.00.0100,000150,000150,0000.00.0Total Available Product1,350,0001,700,0001,950,0002,000,0001,850,0001,700,0001,550,0001,500,0001,500,0001,500,0001,350,0001,500,000Ending Inventory350,000600,000650,000500,000350,000200,00050,0000.00.00.0150,000700,000Regular Production Cost$150$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$2,430,000Overtime Production Cost$2000.00.00.00.00.00.00.0$20,000$30,000$30,0000.00.0$80,000Holding Cost$25$8,750$15,000$16,250$12,500$8,750$5,000$1,2500.00.00.0$3,750$17,500$88,750Shipping cost$50$50,000$55,000$65,000$75,000$75,000$75,000$75,000$75,000$75,000$75,000$60,000$40,000$795,000TOTAL COST$261,250$272,500$283,750$290,000$286,250$282,500$278,750$297,500$307,500$307,500$266,250$260,000$3,400,750
US SPOT MARKET$400$400,000$440,000$520,000$600,000$600,000$600,000$600,000$600,000$600,000$600,000$480,000$320,000$6,360,000
Level (no overtime)LEVEL STRATEGY (CONSTANT WORK FORCE, VARYING INVENTORY)Maximize Inventory Capacity by Maximize Overtime in Early YearAverage Actual Demand / Month1,325,000Shipping Limitation1,500,000Average Worker / Month27Additional Worker7Hiring Cost$7,000Cost / 1000 board feetJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECDemand1,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000800,000Shipping1,000,0001,100,0001,300,0001,500,0001,500,0001,500,0001,500,0001,500,0001,500,0001,500,0001,200,000800,000Beginning Inventory0.0350,000600,000650,000500,000350,000200,00050,0000.00.00.0150,000Regular Production50,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,0001,350,000Overtime Production0.00.00.00.00.00.00.0100,000150,000150,0000.00.0Total Available Product1,350,0001,700,0001,950,0002,000,0001,850,0001,700,0001,550,0001,500,0001,500,0001,500,0001,350,0001,500,000Ending Inventory350,000600,000650,000500,000350,000200,00050,0000.00.00.0150,000700,000Regular Production Cost$150$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$202,500$2,430,000Overtime Production Cost$2000.00.00.00.00.00.00.0$20,000$30,000$30,0000.00.0$80,000Holding Cost$25$8,750$15,000$16,250$12,500$8,750$5,000$1,2500.00.00.0$3,750$17,500$88,750Shipping cost$50$50,000$55,000$65,000$75,000$75,000$75,000$75,000$75,000$75,000$75,000$60,000$40,000$795,000TOTAL COST$261,250$272,500$283,750$290,000$286,250$282,500$278,750$297,500$307,500$307,500$266,250$260,000$3,400,750
US SPOT MARKET$400$400,000$440,000$520,000$600,000$600,000$600,000$600,000$600,000$600,000$600,000$480,000$320,000$6,360,000
MixedMIXED STRATEGY (VARYING INVENTORY, VARYING WORK FORCE)Beginning Worker20New Hire Cost0.0Cost / 1000 board feetJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECDemand1,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000800,000EstimatedWorker202022263036445048403224Beginning Inventory0.00.00.00.00.00.00.00.00.00.00.00.0Regular Production50,0001,000,0001,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000Overtime25%Shortage / Surplus0.0(100,000)(200,000)(200,000)(300,000)(400,000)(300,000)100,000400,000400,000400,000400,000Additional / Layoff Workers50,0000.0244686(2)(8)(8)(8)(8)ActualWorker202226303644504840322416Beginning Inventory0.00.00.00.00.00.00.00.00.00.00.00.0Regular Production50,0001,000,0001,100,0001,300,0001,500,0001,800,0002,200,0002,500,0002,400,0002,000,0001,600,0001,200,000800,000 Production Cost$150$150,000$165,000$195,000$225,000$270,000$330,000$375,000$360,000$300,000$240,000$180,000$120,000$2,910,000.0Overtime Production Overtime Production Cost$2000.00.00.00.00.00.00.00.00.00.00.00.00.0Surplus0.00.00.00.00.00.00.00.00.00.00.00.0 Holding Cost$250.00.00.00.00.00.00.00.00.00.00.00.00.0Hiring cost / new employee$1,0000.0$2,000$4,000$4,000$6,000$8,000$6,0000.00.00.00.00.0$30,000.0Layoff cost / employee$5000.00.00.00.00.00.00.0$1,000$4,000$4,000$4,000$4,000$17,000.0Shipping cost$50$50,000$55,000$65,000$75,000$90,000$110,000$125,000$120,000$100,000$80,000$60,000$40,000$970,000.0TOTAL COST$200,000$222,000$264,000$304,000$366,000$448,000$506,000$481,000$404,000$324,000$244,000$164,000$3,927,000.0
US SPOT MARKET$400$400,000$440,000$520,000$600,000$720,000$880,000$1,000,000$960,000$800,000$640,000$480,000$320,000$7,760,000