2
.
1
1
A company wants to develop a level production plan for a family of products. The opening inventory is
10
0 units and an increase to 1
3
0 units is expected by the end of the plan. The demand for each month is given in what follows, calculate the total production, daily production, and production, and ending inventory for each month.
Total
production =
5
30
+130 –100 =
5
6
0
units
Daily production = 560/
70
= 8 units/day
Ending inventory calculation example:
The monthly planned production for
May
=
21
( 8 =
168
units
The ending inventory for May = 100 + 168 –
115
=
153
units
The monthly planned production for
June
= units
The ending inventory for June = units
The monthly planned production for
July
= units
The ending inventory for July = units
The monthly planned production for
Aug
= units
The ending inventory for Aug = units
The final results are shown in the table below (Please filling in the table by yourself):
Month |
May | June | July | Aug | Total | |
Working days |
21 |
19 |
20 |
10 | 70 | |
Forecast demand |
115 |
125 |
1 4 0 |
150 |
530 | |
Planned Production |
168 | 560 | ||||
Planned inventory 100 |
153 |
2.12
A company wants to develop a level production plan for a family of products. The opening inventory is 600 units and decrease to 200 units is expected by the end of the plan. The demand for each of months is given in what follows. How much the company produce each month? What will be the ending inventory in each month? Do you see any problems with the plan?
2.13
Because of its labor contract a company must hire enough labor for 100units of production per week on one shift or 200 units per week on two shifts. They cannot hire layoff or work over time. During the fourth week workers will be available from another department to work part or all of an extra shift (up to 100 units). There is a planned shut down for maintenance in second week which will cut to half. Develop a production plan the open inventory is 200 units and desired ending inventory is 300 units.
Total production = 300 +
1080
–200 = 1180 units
Number of weeks available for production = 5.5 (because week 2 is half week)
Average weekly level production = 1180/5.5 = 214.5 units/week
The nearest quantity that can be produced is 200 units on two shifts. In the second week there is a shutdown so production in that week will be only 100 units
Total production so far = 5 ( 200 + 100 = 1100 units.
The balance of 80 units can be made in week four when extra help is available. But when you make you have to make at least 100, so that week four’s production will be 300. Therefore, total production is:
(Please filling in the table below)
Week |
1 | 2 | 3 | 4 | 5 | 6 |
120 |
160 |
240 |
1080 | |||
Planned inventory 200 |
Finally, the ending inventory will not be 300 units, why?
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