FUERZAS, NOEMI KARLA N. BA 2102 OPERATIONS MANAGEMENT
Topic 11- Aggregate Planning
1. Evaluate the various configurations of operating and closed plants that will meet
weekly demand. Determine which configuration minimizes total cost.
3 Configurations
Plan A – Plant 1 and Plant 2 will be operating; Plant 3 will be closed
Plan B – Plant 1 and Plant 3 will be operating; Plant 2 will be closed
Plan C – Plant 2 and Plant 3 will be operating; Plant 1 will be closed
Formula for Production Cost (PC) =Total Variable Cost + Total Operating Fixed Cost
Plan A (P1+P2) = PC of P1 + PC of P2 + Non-operating cost + Distribution cost
Plan B (P1+P3) = PC of P1 + PC of P3 + Non-operating cost + Distribution cost
Plan C (P2+P3) = PC of P2 + PC of P3 + Non-operating cost + Distribution cost
PLAN A
Total Fix Cost = 6,000 + 12,000 + 15,000 = 33,000
Variable Cost for 8,000 units = 8,000(2.72 + .35) = 24,560
