A Prototype Problem How to make cost trade-offs of various production plans? Only consider three costs: CH-Cost of hiring one worker=$500; C-Cost of firing one worker=$1,000; C-Cost of holding one unit of inventory for one month-$80
A Prototype Problem • How to make cost trade-offs of various production plans? Only consider three costs: C H=Cost of hiring one worker=$500; C F=Cost of firing one worker=$1,000; C I=Cost of holding one unit of inventory for one month=$80
A Prototype Problem .Translate aggregate production in units to workforce levels: Use a day as an indivisible unit of measure (since not all month have equal number of working days)and define: K-Number of aggregate units produced by one worker in one day. A known fact:over 22 working days,with the workforce constant at 76 workers,the firm produced 245 disk drives. Average production rate=245/22=11.1364 disk drives per day, One worker produced an average of 11.1364/76=0.14653 drive in one day.K=0.14653
A Prototype Problem •Translate aggregate production in units to workforce levels: Use a day as an indivisible unit of measure (since not all month have equal number of working days) and define: K=Number of aggregate units produced by one worker in one day. A known fact: over 22 working days, with the workforce constant at 76 workers, the firm produced 245 disk drives. Average production rate=245/22=11.1364 disk drives per day; One worker produced an average of 11.1364/76=0.14653 drive in one day. K=0.14653
A Prototype Problem Two alternative plans for managing workforce: .Plan 1 is to change workforce each month in order to produce enough units to most closely match the demand pattern-zero inventory plan; .Plan 2 is to maintain the minimum constant workforce necessary to satisfy the net demand-constant workforce plan;
A Prototype Problem Two alternative plans for managing workforce: •Plan 1 is to change workforce each month in order to produce enough units to most closely match the demand pattern-zero inventory plan; •Plan 2 is to maintain the minimum constant workforce necessary to satisfy the net demand-constant workforce plan;
⑧ A Prototype Problem P1:Zero Inventory Plan(Chase Strategy)- minimize inv.level. Table 3-1 Initial Calculation for Zero Inv.Plan for Denspack A B C Month No.of No.of Units Produced Working per Worker(BxK) Days Jan. 20 2.931 Feb. 24 3.517 March 18 2.638 April 26 3.810 May 22 3.224 June 15 2.198
A Prototype Problem P1: Zero Inventory Plan (Chase Strategy) – minimize inv. level. AB C Month No. of Working Days No. of Units Produced per Worker (B K) Jan. 20 2.931 Feb. 24 3.517 March 18 2.638 April 26 3.810 May 22 3.224 June 15 2.198 Table 3-1 Initial Calculation for Zero Inv. Plan for Denspack
⑧ A Prototype Problem P1:Zero Inventory Plan(Chase Strategy)- minimize inv.level. Table 3-1 Initial Calculation for Zero Inv.Plan for Denspack A B C D Month No.of No.of Units Produced Forecast Net Working per Worker(BxK) Demand Days Jan. 20 2.931 780 Feb. 24 3.517 640 March 18 2.638 900 April 26 3.810 1,200 May 22 3.224 2,000 June 15 2.198 2,000
A Prototype Problem P1: Zero Inventory Plan (Chase Strategy) – minimize inv. level. AB C D Month No. of Working Days No. of Units Produced per Worker (B K) Forecast Net Demand Jan. 20 2.931 780 Feb. 24 3.517 640 March 18 2.638 900 April 26 3.810 1,200 May 22 3.224 2,000 June 15 2.198 2,000 Table 3-1 Initial Calculation for Zero Inv. Plan for Denspack