# Resource Planning

Posted: September 3rd, 2013

Resource Planning

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Resource Planning

Question One

Aggregate requirement = (total requirements – opening inventory + closing inventory) / Number of periods.

Total requirement = 5000 + 10000 + 8000 + 2000 = 25000

Opening inventory = 1000

Closing inventory = 0

Number of periods = 4

Therefore, aggregate requirement = (25000 – 1000) / 4 = 6000 units

 Period 1 2 3 4 Total Demand/period 500 10000 8000 2000 25000 Production/period 500 10000 8000 2000 25000 Workers needed 5 100 80 20 Workers hired 0 95 0 0 Workers fired 55 0 20 60

Costs

 Period 1 2 3 4 Total Workers hired 0 \$19000 0 0 \$19000 Workers fired \$22000 0 \$8000 \$24000 \$54000 Regular salary \$6000 \$120000 \$96000 \$24000 \$246000 Total \$28000 \$139000 \$104000 \$48000 \$319000

The total aggregate units required in each quarter are 6000 units. The overall units required at the end of the fourth period are 25000. The overall cost to produce 25000 units at the end of the fourth period is \$319000.

(c)

According the answer above, the best strategy to use is the chase strategy. This is because the period is short. Secondly, there is no ending inventory. This means that only what is needed is produced. The set labour and demand is for the satisfaction of the periods demand only. Therefore, the best strategy to employ in above is chase strategy.

Question Two (a)

 Work 1 2 3 4 5 6 7 8 Customers Orders 50 30 40 10 25 70 25 30 MPS 100 100 100 100 ATP 60 30 90 80 55 85` 65 135

Orders that are not exceeding 135 units will be accepted because this is what the company has promised and able to deliver to the customers. However, for those orders that exceed 135 units, it would not possible for the customers since there are no more units. In this case, an MPS should be introduced to cater for the excess orders of more than 180 units.

 Week 1 2 3 4 Forecast 150 180 210 180 Customers Orders 140 220 200 210 Project available balance 180 40 70 120 160 MPS 250 250 250

Question Three (a)

 Item Scheduled Receipts Projected Available Lead time Lot size Y 80 – week 3 30 1 week LFL B 50 2 weeks 100 C 210 – week 2 70 1 week 210 D 20 2 weeks 60

(b)

 Item Scheduled Receipts Projected Available Lead Time Lot Size Z 0 45 2 weeks LFL B 0 20 1 week LFL C 20 – week 4 10 1 week LFL D 100 – week 3 150 1 week LFL E 500 – week 2 200 1 week LFL

Question Four

 Boston Distribution Center 1 2 3 4 5 6 Gross Requirements 0 20 0 55 0 0 Scheduled receipts 35 0 35 0 0 0 Projected on-hand delivery 10 45 25 60 5 5 5 Planned order releases 20 0 55 0 0 0

 Denver distribution Center 1 2 3 4 5 6 Gross Requirements 0 20 10 0 0 20 Scheduled receipts 11 11 0 11 11 0 Projected on-hand delivery 15 15 6 7 18 29 9 Planned order releases 20 10 0 0 20 0

 Houston Distribution Center 1 2 3 4 5 6 Gross Requirements 10 0 0 45 0 0 Scheduled receipts 0 0 60 0 0 0 Projected on-hand delivery 20 10 10 70 25 25 25 Planned order releases 0 0 45 0 0 0

 Las Vegas Central Warehouse 1 2 3 4 5 6 Gross Requirements 46 11 95 11 11 0 Scheduled receipts 20 80 20 0 0 0 Projected on-hand delivery 50 24 9 18 7 7 7 Planned order releases 11 95 11 11 0 0

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